this post was submitted on 30 Nov 2023
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[–] Maoo@hexbear.net 3 points 1 year ago

There's been restructuring in several industries and a lot of it is a consequence of higher interest rates - rates intended to sink small business and make many cut staff to bridge budget shortfalls. Management always wants to minimize labor costs, but tends to try and avoid cutting to the point of collapse or being "uncompetitive". Higher interest rates sets a new bar on what it means to be "competitive" while cutting staff, as everyone has to take that haircut. However, larger businesses can generally outlast these conditions better than smaller ones, and will prepare to buy up the smaller ones when rates drop again. In the meantime, they'll also cut staff to build that war chest and report profitability.

Everything hasn't quite been going to plan re: interest rates, but having an excuse to cut more staff is certainly there.