Why Do Companies Hire Too Many People? JOSH BERSIN [Video]

This week we witnessed one of the most amazing business stories in years. Meta announced a 22% reduction in headcount coupled with a 25% increase in revenue, resulting in a net income of $14 Billion, up 203% from the year before. This means Meta, a $160+ billion company, is generating 35% net profit after tax (higher than Google, Apple, or Microsoft.)

This is pretty amazing. The company terminates almost one in four of its staff and the financial results skyrocket (Meta’s market cap went up by $1.7 Billion on Friday).

What are we learning here?

Quite simply that companies can grow at an exceptional rate without hiring so many people.

Why Do Companies Over-Hire?

Let’s take a step back. Why do companies over-hire and how can we avoid it? In the coming years as the job market gets even tighter, companies need to grow without a linear growth in staff. We are entering an age where …