Easier to justify to employees. Management simply might not feel comfortable culling the herd at a random moment when they don’t have the excuse of a stock price drop to lean on. The generous severance supports the idea that they’re worried their employees will view employment at Facebook as unstable, or maybe just find it difficult to let people go without feeling bad about it.
Companies have layoffs all the time, not just in downturns. Microsoft laid off 14,000 employees in 2014, at a time when the economy was red hot, especially in tech. It’s just that layoffs in downturns have a greater impact on people’s livelihoods (because it’s not as easy for them to find new employment) so they get additional attention.
So why layoff only in a downturn?
Easier to justify to employees. Management simply might not feel comfortable culling the herd at a random moment when they don’t have the excuse of a stock price drop to lean on. The generous severance supports the idea that they’re worried their employees will view employment at Facebook as unstable, or maybe just find it difficult to let people go without feeling bad about it.
Companies have layoffs all the time, not just in downturns. Microsoft laid off 14,000 employees in 2014, at a time when the economy was red hot, especially in tech. It’s just that layoffs in downturns have a greater impact on people’s livelihoods (because it’s not as easy for them to find new employment) so they get additional attention.