Mass layoffs in IT are more about copying the behavior of others than necessary savings?

The article discusses research conducted by a Stanford professor, revealing an intriguing phenomenon related to mass layoffs that have occurred in recent years. The findings suggest that many of these layoffs may be the result of a concept known as 'social contagion.' This means that companies often mimic the actions of others, leading to a cascading effect of layoffs across various industries. The professor argues that firms, upon observing the actions of their competitors, can fall into a vicious cycle that influences their employment decisions. This phenomenon illustrates how interconnected behaviors among companies impact the job market, as well as how fears of economic downturn can prompt unhealthy layoff strategies that may not be necessary. The article emphasizes that the current issue lies not so much in the economy itself, but rather in the behaviors and perceptions of individuals in the industry. Such insight into mass layoffs can help better understand market dynamics and the responsibilities companies hold in making layoff decisions.