Stanford professor: Mass tech layoffs caused by 'social contagion'

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Stanford professor: Mass tech layoffs caused by 'social contagion'
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I'm a Stanford professor who's studied organizational behavior for decades. The widespread layoffs in tech are more because of copycat behavior than necessary cost-cutting.

, and everybody decided to follow each other and lay people off. A lot of this is just imitation.

And when the economy turns down, you do this all over again. These are all extra expenses that companies wouldn't incur if they had a long-term idea of how many people they needed instead of hiring and firing with every economic fluctuation. If you think about it, companies are essentially buying high and selling low with their employees, which doesn't make sense.

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