[ucm_edge]

In tech I think there has been a social expectation to appear like you are growing over all else.

Low performers weren’t fired, product lines that weren’t successful weren’t shuttered, etc all because one of the goals was to have a line going up and to the right on the growth slide because market sentiment demanded it. The CEO wants to talk about 3x-ing the company at the annual meeting.

Now that investors don’t have as much cash to burn, market sentiment demands the shuttering of unprofitable business plays and a narrative around a more rational headcount.

So we are seeing both. A manager who grew their team 3x during the pandemic is just dumping their mishires that were difficult to fire in the we must grow above all else meta. In other cases companies are shutting down entire business lines and laying off both high and low performers in a mass cull (some places transfer out the high performers before the layoff others just shutter the division).