Meta signals more layoffs could be coming after 'thousands' of workers are reportedly given low performance reviews

[Eric]

Seems more like an excuse to save face after over-hiring and poor management during the pandemic.

Meta signals more layoffs could be coming after 'thousands' of workers are reportedly given low performance reviews

Meta gave about 10% of its staff performance reviews that indicated they were underperforming, The Wall Street Journal reported.

www.businessinsider.com

• Meta gave about 10% of its staff performance reviews indicating they were underperforming, WSJ reported.
• The performance reviews signal that Meta could be gearing up for another round of layoffs.
• Meta let go of about 11,000 workers late last year and dubbed 2023 the "Year of Efficiency."

 

[Chew Toy McCoy]

I read a recent article explaining a lot of the high profile Silicon Valley layoffs have nothing to do with cashflow issues. It’s all pressure from shareholders to pad profits even more with the slowdown. But what that doesn’t explain is what exactly were these thousands of employees doing that they now instantly don’t need?

But I’ve also seen a lot of waste happening in Silicon Valley. All they see is profits and nobody is looking at expense wasting. It’s like if you were excited about clearing a million dollars in a year and as a result blind to the fact that you could have cleared 1.5 million if you cut back on the unnecessary high end impulse purchases.

But Facebook has been on the decline for a while. So the layoffs are probably more directly tied to that reality.

 

[NT1440]

I read a recent article explaining a lot of the high profile Silicon Valley layoffs have nothing to do with cashflow issues. It’s all pressure from shareholders to pad profits even more with the slowdown. But what that doesn’t explain is what exactly were these thousands of employees doing that they now instantly don’t need?

But I’ve also seen a lot of waste happening in Silicon Valley. All they see is profits and nobody is looking at expense wasting. It’s like if you were excited about clearing a million dollars in a year and as a result blind to the fact that you could have cleared 1.5 million if you cut back on the unnecessary high end impulse purchases.

But Facebook has been on the decline for a while. So the layoffs are probably more directly tied to that reality.

It’s worker discipline. We got too high and mighty not taking the lowest of the low treatment during the pandemic and the class that controls the country is making sure we understand who holds the power.

Pre-emptive layoffs in the last bastion of decently paid workers (tech workers), at the same time all these companies are bringing out these technologies to replace much of these jobs, it’s a threat, not a response to “macroeconomic headwinds” as they all claim in unison.

 

[Citysnaps]

Seems more like an excuse to save face after over-hiring and poor management during the pandemic.

Meta signals more layoffs could be coming after 'thousands' of workers are reportedly given low performance reviews

Meta gave about 10% of its staff performance reviews that indicated they were underperforming, The Wall Street Journal reported.

www.businessinsider.com

• Meta gave about 10% of its staff performance reviews indicating they were underperforming, WSJ reported.
• The performance reviews signal that Meta could be gearing up for another round of layoffs.
• Meta let go of about 11,000 workers late last year and dubbed 2023 the "Year of Efficiency."

I remember early last year and the year before there were several stories at the other place about Apple adopting a more efficient/cautious/methodical/conservative (I don't remember the exact descriptor) approach to hiring going forward in light of the economy/covid/etc.

And that spawned a bunch of stupid juvenile comments of the flavor, "Oh, so Apple was careless in hiring before?"

And here we are today with large layoffs from Meta, Salesforce, Google, Microsoft, Amazon, Dell, IBM, PayPal, SAP, Zoom, etc.

In light of the above, it seems Apple's decision to adopt a more cautious/efficient approach to hiring is paying off.

 

[Chew Toy McCoy]

It’s worker discipline. We got too high and mighty not taking the lowest of the low treatment during the pandemic and the class that controls the country is making sure we understand who holds the power.

Pre-emptive layoffs in the last bastion of decently paid workers (tech workers), at the same time all these companies are bringing out these technologies to replace much of these jobs, it’s a threat, not a response to “macroeconomic headwinds” as they all claim in unison.

I’m pro worker, but as a lifelong resident of Silicon Valley who doesn’t work in tech I see their wages as one of the reasons its so damn expensive to live here. I don’t even want to know what it would look like if they got paid even more. Admittedly selfish.

 

[Herdfan]

I read a recent article explaining a lot of the high profile Silicon Valley layoffs have nothing to do with cashflow issues. It’s all pressure from shareholders to pad profits even more with the slowdown. But what that doesn’t explain is what exactly were these thousands of employees doing that they now instantly don’t need?

Price's Law.

It supposes that 50% of the work is done by the square root of the number of people working. So if there are 25 people, 5 will do 50% of the work.

Price’s Law: Why Only A Few People Generate Half Of The Results

At my first sales job, I had about 25 colleagues who did the same work. After the first month, I noticed something peculiar.

medium.com

So basically they weren't needed in the first place.

 

[Pumbaa]

Price's Law.

It supposes that 50% of the work is done by the square root of the number of people working. So if there are 25 people, 5 will do 50% of the work.

Price’s Law: Why Only A Few People Generate Half Of The Results

At my first sales job, I had about 25 colleagues who did the same work. After the first month, I noticed something peculiar.

medium.com

So basically they weren't needed in the first place.

Unless the company is satisfied with less than what was 100% before the layoffs, they were likely needed in the first place.

 

[Eric]

Price's Law.

It supposes that 50% of the work is done by the square root of the number of people working. So if there are 25 people, 5 will do 50% of the work.

Price’s Law: Why Only A Few People Generate Half Of The Results

At my first sales job, I had about 25 colleagues who did the same work. After the first month, I noticed something peculiar.

medium.com

So basically they weren't needed in the first place.

Laughing at just how spot on this is, it's not until they start tightening the belt that they scrutinize all of those hires. I think at the time there was probably a need and to be fair things got so hot in the job market that there wasn't much time to keep up with demand. Now that it's slowing down it's only natural that they would be making cuts.

The only issue I have with Meta here is the fact that they're placing it solely on the ability of those they hired, as if it's their fault the company over hired by tens of thousands. Simply call it what it is, a layoff due to over-hiring, I don't see anyone blaming them for that.

 

[NT1440]

I’m pro worker, but as a lifelong resident of Silicon Valley who doesn’t work in tech I see their wages as one of the reasons its so damn expensive to live here. I don’t even want to know what it would look like if they got paid even more. Admittedly selfish.

It’s true, but again, within the confines of an economic system that pits us against each other.

There is no reason housing has to be considered a financial asset, or at the very least that public housing couldn’t be plentiful, affordable, and desirable like so many other nations have done.

“But what about Singapore?” Lessons from the best public housing program in the world

Also available in: Mongolian | Chinese As we approach the 9th World Urban Forum in Kuala Lumpur next week, one of the essential challenges in implementing the New Urban Agenda that governments are struggling with is the provision at scale of high quality affordable housing, a key part of ...

blogs.worldbank.org

Peak under the veneer of almost every societal problem in this country and you’ll find the parasite of the profit motive. There’s no reason the absolute necessities of life should be commoditized and subject to the profit motive, but this is America (also known as 12 companies in a trenchcoat).

 

[Chew Toy McCoy]

It’s true, but again, within the confines of an economic system that pits us against each other.

There is no reason housing has to be considered a financial asset, or at the very least that public housing couldn’t be plentiful, affordable, and desirable like so many other nations have done.

Peak under the veneer of almost every societal problem in this country and you’ll find the parasite of the profit motive. There’s no reason the absolute necessities of life should be commoditized and subject to the profit motive, but this is America (also known as 12 companies in a trenchcoat).

Capitalism needs the threat of homelessness in order to motivate people to do shit jobs for shit pay.

 

[NT1440]

Capitalism needs the threat of homelessness in order to motivate people to do shit jobs for shit pay.

Exactly, and now that the layoffs are happening the general public will cease with their demands for such luxuries as being able to afford a home, bathroom breaks, paid sick leave, etc.

It sounds cynical, but that’s because the whole thing is sinister when you look at results in the last 4 decades rather than dogma.

I’m absolutely shocked that the like of Bloomberg even released this: https://www.bloomberg.com/news/articles/2020-05-13/what-causes-homelessness-start-with-capitalism

 

[Nycturne]

I’m pro worker, but as a lifelong resident of Silicon Valley who doesn’t work in tech I see their wages as one of the reasons its so damn expensive to live here. I don’t even want to know what it would look like if they got paid even more. Admittedly selfish.

It absolutely is a factor (I say being one of those folks, just not in the SV area). Cram a bunch of highly paid people into one region where the entry level pay for the job is noticeably higher than the median and pair it with policies that create a housing crunch (i.e. limited supply) which are then upheld by NIMBYs... and you get this mess where it's mostly the folks working at big tech bidding against each other in the housing market to the detriment of everyone else. Seattle is basically just following in SF's shadow at this point when it comes to housing.

It’s true, but again, within the confines of an economic system that pits us against each other.

Not that you won't see tech bros happily playing their part in this.

There is no reason housing has to be considered a financial asset, or at the very least that public housing couldn’t be plentiful, affordable, and desirable like so many other nations have done.

No real disagreement there. But there are a lot of NIMBYs that will get all up in arms if you devalue their 750k rambler starter home. Hell, just fixing some of our zoning rules to allow for more density can help relieve the pressure. SF is apparently 75% zoned as R1 (single family homes only).

Laughing at just how spot on this is, it's not until they start tightening the belt that they scrutinize all of those hires. I think at the time there was probably a need and to be fair things got so hot in the job market that there wasn't much time to keep up with demand. Now that it's slowing down it's only natural that they would be making cuts.

The only issue I have with Meta here is the fact that they're placing it solely on the ability of those they hired, as if it's their fault the company over hired by tens of thousands. Simply call it what it is, a layoff due to over-hiring, I don't see anyone blaming them for that.

A big chunk of the overhiring was to go chase the new remote work stuff that the pandemic brought. Huge demand for services that were not doing great before, and suddenly the fear of a recession scares the bean counters. Meta in particular was betting that VR would bring the next stage of remote work, but to be honest, I think VR work is tech bros being tech bros.