Why Companies Are No Longer Hanging on to Employees
Posted2 months agoActiveabout 2 months ago
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LayoffsLabor MarketJob Security
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Layoffs
Labor Market
Job Security
The Wall Street Journal article discusses why companies are no longer holding on to employees, sparking a discussion on the implications of layoffs and the changing labor market.
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Nov 2, 2025 at 2:34 PM EST
2 months ago
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Nov 3, 2025 at 9:05 PM EST
about 2 months ago
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ID: 45792762Type: storyLast synced: 11/20/2025, 1:17:51 PM
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I really don’t think this is AI causing all these layoffs. It’s just a return to business fundamentals, but we’re in a period of massive inflation and it’s getting harder to be profitable.
“The job market has softened in recent months, however, marking a safer environment for companies to start streamlining their workforces. “
This also shows that big corporations do not expect growth. Investing for growth is the best strategy unless the company is sure that there is no more growth. Then cutting expenses makes sense, short term at least.
> In an environment where employment growth is already low, any increase in layoffs could lead the economy to start shedding jobs.
Stagflation is a very likely outcome of current policy. Job loss, increase in prices, shrinking economy, etc.
> While there is evidence that AI is cutting into demand for certain jobs, such as software development
* citation needed.
> “Labor hoarding was especially pronounced in higher-wage jobs, where employees are harder to find and therefore more costly to lose,”
This is one problem with having increasing monopolies in the sector. When most developers will be hired by the same dozen companies there is no job market, but just a cartel in line with the 2010 no-poaching agreements.
- These agreements, which can take various forms, aim to reduce competition in labour markets. They also carry the risk of suppressing wages and limiting job opportunities for employees. While such agreements may be pursuant to ancillary legitimate restrictions, they are often viewed as horizontal cartel agreements necessitating a per se approach (https://www.legal500.com/developments/thought-leadership/no-...)
So, nothing new. Big tech screwing software developers like they always do.
After working 17 years at a good company (but wanting new challenges and career advancement) I serious problems with the last two jobs. I stood on principle .. and let the chips fall accordingly.
...covid
...remote work
...moving away from HCOL areas
...quiet quitters
...layoffs
...RTO
...no jobs
workers got too much leverage and it had to be taken back.
"Major investor calls on Google owner to ‘aggressively’ cut staff and pay" https://www.theguardian.com/technology/2022/nov/15/major-inv... (2 years old)