Some Of These Layoffs Aren’t Really Layoffs
Some CEOs see this as a once-in-a-startup opportunity to get rid of the deadwood in the company.
A company that has made layoffs is branded a loser, and it becomes very hard to get positive press, recruit new talent and close new rounds of financing. Until now that is. Companies that have made layoffs in the last week are generally being given a pat on the back for being financially prudent.
They just wanted to fire the 5% of staff that weren’t really pulling their weight or putting in the effort.
Clearly not all, or even most, of the layoffs are hidden terminations of non-performing employees. But many of them are, CEOs are telling me off record. It’s not like the names are being drawn out of a hat at random. The superstars tend to stay.