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acneadjr OP t1_j6etkb0 wrote

Reply to comment by MamasBrewThug in The case for recession & why retail spending is now more important than inflation. by acneadjr

Bloomberg had reported ~120K big tech layoffs over 2022. Some estimates expect the economy to start losing ~240K jobs / month.

The reason I think Tech went first in layoffs is because Tech doesn't have the other Cap Ex buckets to shed first. Tech's employees (Product, Engineers, Design) are usually included in Cap Ex calculations in comparison hourly / GA workers are not. In other industry's they can cut back on new store openings, inventory purchases, etc.. Tech just doesn't have these expenses so they are left cutting employees first.

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garbageacct123456789 t1_j6h05yt wrote

Mostly accurate. I have observed something close to this at my company but instead of cutting employees they cut 90% of the contract workforce. Those numbers don’t actually count as a layoff until the consulting firm needs to clear the bench and lays them off. If one were interested they could try and get the data for layoffs at consulting firms such as Accenture, etc. Most times the contract worker actually costs us more than a full time employee. Sure the worker gets paid less by their firm but their firm bills 2-2.5x their salary.

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