Gregory's Server@tinker I was coming to a similar conclusion. Just 2 weeks ago, one of my mentors and I were discussing this in the context of layoffs and ‘savings’ from workforce reductions. In the mid-to long-term, these savings actually become crushing costs risking the very survival of the company.
The ‘savings’ usually don’t account for the very expensive product/technical/knowledge debt, equipment maintenance beyond the qualified life expectancy, and what not.
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We often deal with this on deployed apps where we're being asked by the panicked new owners: "Previous team laid off, can you help us reverse-engineer this? It's required for {critical function}..." Incompetent sabotage by management focused on activist private equity threats is real. There doesn't seem to be much long-term shareholders can do to prevent it. @tab2space @tinker exactly! Maybe persistent visible companion analysis of every financial statement of corps with workforce reductions or geographic redistributions? You heavily discount the margins and cash on hand by the expected delayed market timing, the impact to their products, and the financial exposure they just created for themselves. Also analyze major equity holders (for correlation). Publish. Repeat. |
@NumberDoctor @tinker This short-term, business and financial-driven layoff surge in tech is building an *empire* of technical debt, and you don't have to look further than X to see how that's going to turn out.