- Tech companies are shrinking their workforces, with close to 300k job cuts announced in the US since last year.
- Investors believe some tech workforces are simply too big and cutting them should increase revenue per employee.
- Redundancies need to be seen in the context of previous breakneck expansion.
- Founders bemoan the creep of middle management and some companies turn to flat management.
- Headcount reductions improve short-term profits per employee but may deteriorate longer-term performance.
Tech workforces: how low can they go?
Tech companies are cutting workforces to increase revenue per employee, but founders bemoan the creep of middle management and layoffs may reduce productivity.