this post was submitted on 15 Dec 2023
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Ah, the Jack Welch method.
(Seriously, fuck that guy. He was a pioneer among bloodsucking CEOS, and part of it was mass layoffs to boost short-term profits.)
Honest question: what’s bad about firing the “bad performers”?
If they wanted to fire the "bad performers" then they'd be firing the CEOs and higher ranked people, not those actually making the products work.
Nothing, if that’s genuinely what you’re doing.
But it’s dangerous to incentivize it, because you get short-term gains by firing anyone, whether or not it’s the right long-term call.
It’s also just difficult to identify bad performers. Fundamental attribution error is a bitch. And because we’re really bad at seeing the entire system surrounding someone’s productivity, we tend to blame operator error only to find that the next operator we hire has the exact same problem.
Exactly. It's just goosing the numbers. The company made this much in profit, and the cost-cutting from firing people will save money immediately, so it looks great... on paper... for a little while. It doesn't matter if the company is gutted, because the CEO and most of the investors will dip before things get too bad, and go onto the next thing. The employees will suffer and the customers will be upset, but CEOs don't answer to them, they answer to shareholders, and shareholders just want the line to go up this quarter.