Amazon Lays Off Another 9K Workers

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MAR 2023

Image copyright: Reuters

story last updated JAN 31

The Spin

Narrative A

These companies have no choice but to downsize. The pandemic tech boom allowed companies to increase their workforces by as much as 200%, but the economy has since turned for the worse. With the US Federal Reserve reacting to inflation by hiking interest rates, there’s less available venture capital, and digital-ad revenue has dipped.

Forbes

Narrative B

Instead of layoffs, which are an old-school way of dealing with a recession, companies should find alternative strategies because social media has made everyone a workers' rights activist with a global microphone. Companies that conduct layoffs suffer from poor optics, the cost of restructuring, and the low morale they create — leading them to perform poorly.

Harvard Business Review