Since employment costs are a major part of any business’ operating costs the concept of “right sizing” is probably older than the pyramids. It’s also a classic part of the cycle that leads to and propagates recessions.
https://www.wsj.com/business/has-the-era-of-the-mega-layoff-arrived-928f061d?mod=hp_lead_pos3
Has the Era of the Mega-Layoff Arrived?
From Snap to Block to Amazon, a new template for ‘right sizing’ the workforce is spreading through C-suites—and other companies are taking note
By Chip Cutter, The Wall Street Journal, April 15, 2026
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Companies are increasingly conducting large-scale layoffs, receiving investor praise and stock bumps, a shift from past perceptions.
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Snap is laying off 16% of its staff, and Block eliminated 40% of its workforce, with both companies’ shares rising after the announcements.
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The willingness to make large cuts reflects a view that big teams impede progress.
So far, the rationale for the cuts appears to be driven less by AI’s abilities to replace workers outright than by the soaring costs of building the technology, according to executives. And many companies, particularly in tech, continue to course-correct after overhiring during the pandemic.
Regardless of the why, executives said, companies are finding a way to slash jobs and are being rewarded by investors for it…
Among white-collar workers in tech and elsewhere, the angst is spreading. Many college-educated workers are finding it increasingly difficult to find new work after losing a job. Over the past 12 months, unemployment among college-educated workers 34 and under has converged—and now surpassed—the 4.1% rate for people with two-year associate degrees…
Meanwhile, apart from fields such as healthcare, hiring in other parts of the economy has largely stalled. …[end quote]
The economist Peter Turchin calls unemployed educated people “excess elites.” There may not be enough to directly impact the economy but their discontent can have outsized political/ social impacts.
Wendy