What is up with that? Any good reasons behind that?
Echoing what BudgieMania said, think of companies like Peloton and Zoom, or even Amazon. In the peak of the pandemic they grew like crazy, and they hired staff like there was no tomorrow. Tech firms of all kinds outpaced the rest of the economy because everything went digital almost overnight, and people stuck at home completely transformed their consumption patterns. Turns out there was a tomorrow, and after things settled down, life returned to normal, and folks started returning to offices, demand for some of those digital products fell back to Earth. Also what feels like the bottom dropping out to employees is actually a significant net uptick in job creation. That certainly doesn't help the folks currently out of work (my partner is actually one of them), but it's much more of a right-sizing than a down-sizing, all things considered.
In most cases, they hired and grew at an irresponsible rate in 2021-2022
What is up with that? Any good reasons behind that?
Echoing what BudgieMania said, think of companies like Peloton and Zoom, or even Amazon. In the peak of the pandemic they grew like crazy, and they hired staff like there was no tomorrow. Tech firms of all kinds outpaced the rest of the economy because everything went digital almost overnight, and people stuck at home completely transformed their consumption patterns. Turns out there was a tomorrow, and after things settled down, life returned to normal, and folks started returning to offices, demand for some of those digital products fell back to Earth. Also what feels like the bottom dropping out to employees is actually a significant net uptick in job creation. That certainly doesn't help the folks currently out of work (my partner is actually one of them), but it's much more of a right-sizing than a down-sizing, all things considered.
In most cases, they hired and grew at an irresponsible rate in 2021-2022
Just compare the growth in employees in Microsoft in 2021-2022 compared to the 5 previous years or so
Of course, the employees are not to blame for that and should not pay for that, but that's how they roll I guess...
Private equity is likely the case