End of an era: Zoom tells employees to return to office for work::Zoom is asking all of its employees to return to the office for the first time since the COVID-19 pandemic began, when the tech company blew up as one of the main means of communication when people were forced to work from home.
Pretty bad optics when your company depends on enabling collaboration in virtual settings.
This is what is referred to as a “backdoor” or “quite” layoff.
They know there are people who either can’t come in or who will refuse to come in. By getting people to trim themselves from their books, they get to cut costs without actually having to do layoffs.
This is the first step of modern cost cutting. Next we will hear about other cost cutting measures, and then eventually layoffs.
I never understood this tactic. Why demoralize your whole workforce for months until enough motivated and talented people leave that you don’t have to fire anyone. The useless ones are never the first ones to leave, especially if they don’t have any talents to sell to other companies. Also people don’t leave immediately after it turns bad, it usually takes months for them to be demoralized enough and find new arrangements.
By that time wouldn’t it be smarter to eat the cost of firing people from the start, get rid of the fat, pay the severance and move on with those that can still lead you to success? I’m convinced the moral hit would be a lot less this way and the bounce back would be faster.
It makes the short term numbers look good. They just want to produce a spreadsheet that tells Wall Street that they cut $x million in labour costs, and don’t really care how that affects the long term health of the company.
Besides, when a corporation becomes a certain size, they don’t invest in innovation any more, they just buy a start-up that did something innovative, integrate it into their existing product and then repeat the cycle.
Capitalism is trending more and more into short term thinking, because Wall Street realised that capital can be moved at the press of a button. When a corporation is sucked dry, you load it with debt, sell your stock to retail investors, pension funds and/or the government and move on to the next opportunity.
Leading by watching asses in seats.