The Real Reason Layoffs Are Rising

"as companies announce layoffs their stock prices go up as companies cut jobs investors buy more of that stock and that stock and Company become more valuable"

"And so now as you're seeing this change of the Workforce as you're seeing the change in the economy as you're seeing a change with interest rates you're seeing that happen in the job market and remember you have the employees in a company the people that work in the company and then you have the owners of the company sometimes you have an overlap but the owners are the ones that kind of help dictate the decisions of the company and the CEO doesn't abide by those rules especially if it's a publicly traded company well then you can see the CEO get kicked out and the board then puts in a new CEO who helps follow the rules or follows the instructions given by the shareholders of the company"

"higher interest rates have an impact on the economy and some of these are pretty obvious like when interest rates go up buying a home becomes more expensive because now you have to pay more money in your mortgage and it also means that buying a a car is more expensive and it also means that buy money on your credit card is more expensive all these things slow down spending which impact the economy"

"because we're seeing a lot of pressure from shareholders because shareholders are saying we're not seeing that same economic boom that we're seeing in 2021 and 2022 and if this continues in 2024 well we have to start projecting today and start changing our expenses today"

"and one of the reasons why companies are going back into the office is to increase their productivity but another reason is because they want some employees just to leave but another reason you've been seeing more and more companies demand employees go back into the office is because they know everybody's not going to come back and so some people will leave by themselves and if you leave by yourself well you're not going to have to worry about being paid a Severance which saves the company some cost"

"because we have a lot of employees and not enough things being sold and again that's why in 2022 we saw this big shift where companies were really pressing productivity and efficiency and even the return to work that way companies can drive more revenue for every employee"

"because in 2020 2021 and even into 2022 the power was really in the hands of the employee you saw employees going through the great resignation and quiet quitting and all that stuff where employees were saying we're we're not happy with our work we're not happy with our pay we're not happy with our work life balance and employees were able to kind of get whatever they wanted but then 2022 and even more into 2023 the power went back into the hands of the employer"

"but then 2022 and even more into 2023 the power went back into the hands of the employer I wouldn't say fully into the hands of the employer but it started to balance out a little bit more because our employers are being more picky they're not raising wages the way that they were they're not hiring as many people as they were before because they don't need to"

"higher interest rates have an impact on the economy and some of these are pretty obvious like when interest rates go up buying a home becomes more expensive because now you have to pay more money in your mortgage and it also means that buying a a car is more expensive and it also means that buy money on your credit card is more expensive all these things slow down spending which impact the economy"

"it's not to produce the best product is to increase the shareholder value that is your CEO's fiduc shary Duty their duty is to increase the shareholder value and so everything that they come up with their rules their product decisions their marketing decisions are to increase shareholder value"

"well now companies are saying maybe we need to let go of some divisions or maybe we need to let go of some unproductive employees or maybe we can cut 25% of our Workforce and still generate the same Revenue because some people are just not putting in the same effort as others"

"but then 2022 and even more into 2023 the power went back into the hands of the employer I wouldn't say fully into the hands of the employer but it started to balance out a little bit more because our employers are being more picky they're not raising wages the way that they were they're not hiring as many people as they were before because they don't need to and we're still really haven't seen this full even out of the balance but you're starting to see this shift in the job market because of the shift in the economy"

"and in 2022 that was when things started to flip because we started to see the impacts of all the money printing through the high inflation and that was when our Central Bank the Federal Reserve Bank said we need to stop this and we need to start doing the opposite which meant they started to turn off this free money printer and they started to raise interest rates in 2022 which started to change the way that our economy started to work and it started to change the growth in the job market"

"if this continues in 2024 well we have to start projecting today and start changing our expenses today and so what companies are doing is well they want to keep the best work and one of the reasons why companies are going back into the office is to increase their productivity but another reason is because they want some employees just to leave"

"another reason you've been seeing more and more companies demand employees go back into the office is because they know everybody's not going to come back and so some people will leave by themselves and if you leave by yourself well you're not going to have to worry about being paid a Severance which saves the company some cost"

"employers generally would rather have somebody who's putting in 110% versus somebody who's putting in 85% I say generally because there's always exceptions to the rule but employers generally want the person who's going to do whatever it takes for the company"

"well then you can see the CEO get kicked out and the board then puts in a new CEO who helps follow the rules or follows the instructions given by the shareholders of the company"