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What’s going on:
Big Tech is discovering that in Europe, labor protections are substantially greater than in the US, making mass layoffs more complicated, according to Bloomberg.
Companies in countries such as France and Germany have to give their workers considerable prior notice of any staff reductions, as well as potentially entering into protracted severance discussions with their employees’ works councils.
Why it matters:
Recent months have seen thousands of employees being cut from major tech companies, with layoffs still in effect in many places.
Firms like Google and Amazon are having difficulty implementing layoffs in European countries, owing to stringent labor laws and the need to consult with employee representative groups. By contrast, the US allows firms to issue layoff notices and part ways with hundreds of staff within a matter of months.
How it’ll impact the future:
Tech workers in Europe are left wondering if they’ll ever be able to move forward with their jobs, as tech companies attempt to work out the layoffs while relying on elected employee representatives to negotiate and reach a resolution.
