this post was submitted on 16 May 2026
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[–] SnoringEarthworm@sh.itjust.works 60 points 1 day ago* (last edited 1 day ago)

Me, after firing the Cisco CEO: We just made $53 million in revenue!

[–] floofloof@lemmy.ca 145 points 1 day ago* (last edited 1 day ago) (2 children)

Meta is doing the exact same thing:

Mark Zuckerberg's social media giant will reportedly hand out roughly 8,000 pink slips on Wednesday, May 20, eliminating about 10% of its global workforce. Notably, though, these cuts will arrive on the heels of one of the most lucrative quarters in the company's history: $56.31 billion in revenue and $26.8 billion in net income for the first three months of 2026...

https://moneywise.com/news/top-stories/meta-layoffs-8000-workers-zuckerberg-ai-spending

[–] ThePyroPython@lemmy.world 130 points 1 day ago (15 children)

Slashing 10% of your workforce annually is something Jack Welch thought of when he was CEO of General Electric; essentially it shifts that 10% of staff overhead cost straight to profits per year.

The justification they give for the figure is that it's the lowest performing 10% according to internal key performance indicator (KPI) metrics. What this effectively does is two fold:

  1. Anyone who's focusing on delivering stuff the company needs long term isn't always or sometimes never will produce nice neat KPIs that can be measured along with the rest of the company. This means these people are under constant pressure and can often get swept up in the firings.

  2. It makes KPIs, a measuring tool, the target which as any statistician will tell you that when you make the measurement a target it ceases to be a good measuring tool. Because everyone is automatically incentivised to deliver KPIs NOT the actual company deliverables that generate the added value and therefore the profit.

This means after 5 to 10 years of this cycle all that's left of the company's institutional knowledge is how to deliver for KPIs and the sycophants who best adapt to this reality. You get a hollowing out of the company.

If this AI fuelled trend keeps up then companies like Cisco and Meta will eventually implode at some point.

[–] binarytobis@lemmy.world 64 points 1 day ago (3 children)

I remember the grocery store I worked at started posting the rate for each cashier of items scanned per minute logged into a register. They didn’t say anything about it, but I now realize they were probably leading into using that data as justification for something.

My dumbass 16 year old self thought “I’m going to get that number so high it breaks the system.” I would lock my station after the previous customer, and take a little time to face all of the UPC codes and look up produce codes and make a general strategy. Then, I would unlock the register, scan like a madman, then lock it and casually start bagging. The customers would get concerned they needed to hurry up based on my fervor, so I would tell them “Take all the time you need, see that show yesterday?”

Next time they posted the rankings, my number was 20x as high as second place. After a few weeks of getting my number a little higher each time, my boss’ boss came by and told me to knock it off since I was polluting their metrics. Next week no new rankings.

I like to think I inadvertently helped prevent KPI nonsense.

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[–] MonkderVierte@lemmy.zip 2 points 19 hours ago* (last edited 19 hours ago)

The justification they give for the figure is that it's the lowest performing 10%

But that would be turnover rate, not cuts. Cuts have no replacement.

[–] Brummbaer@pawb.social 42 points 1 day ago (1 children)

I think we are already seeing that with Microsoft. Another 2-3 rounds of AI and they forget how to build windows.

[–] WaxRhetorical@lemmy.world 17 points 1 day ago (1 children)

Are you telling me they ever knew how to build Windows?

[–] stringere@sh.itjust.works 15 points 1 day ago* (last edited 1 day ago)

4x pain + 1 glass

Or, alternatively:

[–] floofloof@lemmy.ca 35 points 1 day ago* (last edited 1 day ago) (1 children)

It also fosters a culture of non-cooperation with colleagues (because they are now your competition), where workers and teams try to sabotage each other, or at least not help, and throw each other under the bus. So there's mutual mistrust too. And no one wants to take a risk and innovate, leading to further stagnation.

[–] testaccount789@sh.itjust.works 11 points 1 day ago (1 children)

But that will be a problem for the next guy.

[–] stringere@sh.itjust.works 4 points 1 day ago

Today's fires are for next quarter's employees to fix.

[–] Zagorath@quokk.au 27 points 1 day ago (2 children)

The justification they give for the figure is that it’s the lowest performing 10% according to internal key performance indicator (KPI) metrics

The thing is, that's not what layoffs are supposed to be. That's effectively firing someone for cause. Maybe in America the difference doesn't matter, but in the civilised world, at least in theory, it does. But in reality they can somehow get away with this and call it "layoffs".

If a company does layoffs, they should not be allowed to hire any staff in the same or similar roles for 12 months.

[–] grue@lemmy.world 8 points 1 day ago* (last edited 1 day ago)

If a company does layoffs, they should not be allowed to hire any staff in the same or similar roles for 12 months.

Either that, or the laid-off workers should get right of first refusal for the positions. (Along with some additional incentive for the company not to game it.)

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[–] pelya@lemmy.world 8 points 1 day ago (2 children)

With Meta it very much looks like overhiring. What are those 8000 workers even doing, designing CSS for each individual ad on Facebook?

This blows my mind when I try to think about it. And this is only 10% of a supposed 80,000 globally. Facebook owns a bunch of companies though so I’m assuming they’re being counted too. Instagram, WhatsApp, Oculus, etc

[–] grue@lemmy.world 6 points 1 day ago

Implementing additional forms of wankery in the "Metaverse".

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[–] HootinNHollerin@lemmy.dbzer0.com 100 points 1 day ago (1 children)
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[–] merdaverse@lemmy.zip 26 points 1 day ago

Most of their profits are paid out to shareholders, like last year, and the year before that. Nobody should expect anything better from any capitalist corporation.

[–] newton@feddit.online 1 points 17 hours ago
[–] Assassassin@lemmy.dbzer0.com 59 points 1 day ago
[–] NottaLottaOcelot@lemmy.ca 24 points 1 day ago (5 children)

The stock market is a weird thing - prices seem to be tied to whether a company can make more this quarter than last quarter, and not tethered to whether a company makes a profit. I figure that they made record revenue and now need a strategy to make even more profit next quarter, which they hope to achieve by reducing expenses via layoffs.

I don’t like it, but the economy is more tethered to speculation than reality.

[–] prole@lemmy.blahaj.zone 2 points 17 hours ago (1 children)

One of the biggest (official) recession indicators, is whether or not the public thinks we're in a recession.

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[–] flandish@lemmy.world 17 points 1 day ago (1 children)

it’s not weird. it’s literally how capitalism works. it feels weird because it actually feels fucking wrong and disgusting but we are propagandized into thinking this is ok.

[–] Jako302@feddit.org 1 points 16 hours ago* (last edited 16 hours ago) (1 children)

Nah, not even the basic "its capitalism" excuse works anymore for that idiocracy. Capitalism may force companies to increase earnings, which is already stupid enough in itself, but the timeframe that's measured in got reduced so much in the last few years that even short term goals are impossible without cutting costs.

Ten years ago monthly earnings were at most an indicator, what mattered most were fiscal years. It slowly evolved to quarterly earnings and now we are at a point were a single "bad" (as in, not as much profit as last month) can plunge your stock prices by 10+%.

Yes capitalism always fucked over the working class, bit it wasn't made to force big, profitable companies to self destruct for 0.5% higher monthly profits.

[–] flandish@lemmy.world 1 points 15 hours ago

i think you neglect to consider capitalism’s growth (as a mechanic) itself. What you describe is exactly how it is working. What I believe is that this is an evolved economic system, designed from the start to “eat its own dogfood” so to speak.

[–] anon_8675309@lemmy.world 15 points 1 day ago

It’s a pyramid scheme. You participate long enough to be able to move your money to a more stable platform and live off the measly interest that provides.

[–] tempest@lemmy.ca 5 points 1 day ago

Line go up dog, just give in and roll around in the slop with the rest of us.

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[–] Switorik@sh.itjust.works 35 points 1 day ago (2 children)

I know someone who worked a weekend event to show case a product and they did extremely well going nearly 15k in sales. They made $50 for the few hours it took to generate that. The amount of effort to prepare for this, drive there, waste weekend hours working is not worth $50. Especially with how much gas is. I don't understand why people don't just say no.

[–] scarabic@lemmy.world 9 points 1 day ago* (last edited 1 day ago) (1 children)

$50 sounds like a ridiculous commission under any circumstances. There are more numbers that we need before we can really judge the situation though. It’s not like $50 went to your friend and $14,950 went to their boss’s pocket. Surely there’s a cost to manufacture whatever it is being sold. Still, there’s no way that 0.3% is a reasonable sales commission.

[–] Switorik@sh.itjust.works 9 points 1 day ago (2 children)

They don't get paid commission. Since people continue to work for companies like this and are OK being paid so little, nothing will change.

[–] grue@lemmy.world 5 points 1 day ago* (last edited 1 day ago)

Yeah, I was gonna say, that sounds more being paid an hourly rate (at sub-livable wage, BTW) and $0 commission.

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I worked in customer support/sales for the largest ISP in my country. We were always understaffed because it was a shit job, so the turnover was high. We were forced to sign overtime, weekends and holidays included. I'll never forget this middle management asshole who enthusiastically attempted to convince me it's totally worth it. He does it, too, and he's always happy to see higher paycheck. At the end of the month that overtime amounted to ~€15-20 for me. Yeah, fun times. I was thrilled to kiss that job and its abusive management goodbye.

[–] Schal330@lemmy.world 33 points 1 day ago (2 children)

Can't be expecting the peasants to share in the success of their hard work! Better to fire them and rehire them for cheaper when they are desperate.

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[–] ZombieCyborgFromOuterSpace@piefed.ca 28 points 1 day ago (8 children)

In some countries, this is illegal.

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[–] thatradomguy@lemmy.world 4 points 1 day ago (1 children)

Cisco can take their campus fabrics/DNA and shove it up their arse. They stopped trying a long time ago and IOS is still a pain to use.

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[–] aeronmelon@lemmy.world 9 points 1 day ago

“Correlation.”

[–] ozoned@piefed.social 3 points 1 day ago

LINE GO UP ALWAYS AND FOREVER!

As long as you don't look at all the other lines.

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