If you’re in the U.S., unless you’ve been living in a cave, you’re aware that major banks and investment firms have taken huge financial hits. As a result, they are laying off thousands of workers. This puzzles me.
I understand in the short term why these firms would slash payrolls (I’m not an idiot), but this implies one of three things about these firms’ workforces:
- These workers weren’t needed, and should have never been hired in the first place.
- These firms are firing more experienced workers with higher salaries, and replacing them with newer, lower paid workers (and hoping the lack of experience and the turnover don’t hurt their performance).
- Laying these workers off is destructive in the long term, and these companies have done more harm than good.
I ask this because it’s a shitty deal to lose your job because someone else screwed up (and received a golden parachute in the process).