in their businesses and set a path for better profits, new research from Goldman Sachs suggests.
"We find that three characteristics are common to many of the companies that have recently announced a large number of layoffs," Goldman Sachs chief economist Jan Hatzius wrote in a new client note. "First, many are in the technology sector. Second, many hired aggressively during the pandemic—on average, their headcount grew 41%—often because they over-extrapolated pandemic-related trends such as increases in demand for goods or time spent online.
The logo of Meta Platforms is seen in Davos, Switzerland, May 22, 2022. Picture taken May 22, 2022. REUTERS/Arnd WiegmannTo kick off February, Dell (
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