Goldman Sachs has started layoffs. I think its mostly because they used to let go bottom 1-5% performers but because busy time in COVID, they didn’t do their normal letting go practice so they are now restarting it. What are your thoughts? Is my theory correct or is it because of the market slow down?
And how are people still saying that consulting job market is going strong?
Chief
I agree that GS layoffs are largely a byproduct of aggressive hiring/retention policies during COVID. However, they’re conveniently killing two birds with one stone, reducing their payroll and culling weak members of the herd. Similar strategy with Elon Musk ending WFH. People will self-select and leave, reducing the need for aggressive layoffs.
Most companies identify under performers and some have a mechanism to train them and give additional opportunities for learning and development. But market conditions may restrict this buffer or the process itself. (Idea is the cost to find and onboard a new resource in some cases are more than training existing employee, same rational for promotion)
Having said this- companies cannot be recession proof. Smart leadership can channel resources to needed areas during these times. Truth be told Kpmg has let go resources during 2020 (performance + covid concerns).so if your performance reflects any improvement-take proactive measures !
Also from Fox News this week
Crap… I am waiting to hear about the results of my AWS interview