What’s going on:
In Silicon Valley, the lack of accountability from executives is becoming more and more common. CEOs from tech giants like Amazon, Microsoft and Meta steered their respective companies in a direction that was not sustainable by making reckless investments and assuming that the surge in technology due to the pandemic would be long-lasting.
Since those assumptions were ultimately unfounded, the workers at the lower rungs of the tech industry are being left to suffer the consequences of these irresponsible decisions, while the decision makers themselves face minimal to no consequences.
Why it matters:
Research has proven that laying off staff has a net negative effect on productivity, stifles innovation and leads to an extended reduction in profits.
Layoffs can also have a devastating impact on remaining employees, including the cutting of benefits and other services that could potentially help them maintain productivity.
How it’ll impact the future:
Rather than fessing up to mismanagement, CEOs seek to protect their reputations by blaming factors outside of their control, such as the economy.
However, executives that flee at the first signs of a recession, refuse accountability and treat employees as expendable assets are bound for an even worse reputation than any “broader economic uncertainty” could have provided. In fact, it’s during these eras that an executive’s judgement will be under scrutiny, and so far, many of tech’s most prominent leaders have failed miserably.