Tech companies are laying off an average of 988 employees per day this year.

The total number of employees laid off from the beginning of the year to now is 119,565 thousand people.
The company that announced the most layoffs is $ORCL with 30,000 employees last March.
So, if a company announces a decision to lay off employees, is it considered negative or positive?
Or earlier, why did companies lay off employees?
1- Workforce inflation: During the COVID period, companies hired "crazy" due to high demand for "online" tools and software at that time,
now the pace has slowed, so they are addressing this issue.
2- Cost reduction: This is the most important and obvious reason, any recruitment reduction activity directly reflects on the company's costs and increases profits.
3- Artificial intelligence: Companies are starting to shift some tasks to artificial intelligence, which reduces the need for staff.
4- Investor pressure: Investors demand higher profits, part of the solution is reducing costs as mentioned in point 2.
5- Restructuring: And this decision was part of a larger plan affecting all departments and operations of the company at that time.
The question is, is this news negative or positive for companies?
Honestly, it’s a mixed bag, and in my opinion, it takes time to see the results of the decision.
If it reflects in the company's profits and performance remains good, then it’s positive because it has addressed "workforce inflation."
If there’s no revenue growth or it weakens, then it’s negative, and worst of all if this decision affects the work environment, causing resignations and loss of talent.
Here we say that this decision is a disaster...