This is a regular cycle. These companies will eventually overhire again, then they'll lay people off again. This has been the pattern in the industry for a very long time.
They likely won't be rehired; some of those business will not exist. Some companies will not try to hire everyone back. And with so many people out of work, there will be less economic activity, period. If the government had funded companies to keep their employees on payroll, we could have an un-pause scenario. We are unlikely to have that after the mass layoffs. The economy is a system, and will be in a state with much less employment and money flowing.
What do you think would happen most of the time if these acquihires didn't happen? The companies would just go out of business and the services would be shut down anyway.
Hard to say. Some of them might still be employed but with zero pay, others might have been laid off, and for others their employers just folded the business.
It's been amazing. A good friend was laid off from what should have been a job for life there. I don't see how they're going to operate while eliminating people from nearly critical positions.
If this would happen to my company, I'd expect the doors to close. If it happened to any of our competitors, we'd be throwing a victory party.
So I assume that in 10 years those valuable employees will be fired, as they won't fit culturally, regardless spending the last 10 years in that company :)
I don't hate to see them go, and not for health reasons.
This is what is supposed to happen when a company can not perform efficiently with the resources it has. I realize the strike killed this company, but it was severely wounded and bleeding already. No guarantee it would have survived much longer, strike or no strike.
In these situations, it is good for the company to fold. Sell off it's assets and let another business that can make better use of these resources do so.
If a company is squandering resources, that is a drag on the economy. Much better to let someone new withe better ideas and better execution come into play. Bankruptcy and Liquidation lets this happen. It's a good thing.
If a company can pick up these resources and use them more efficiently, they will hire people. And maybe all the things that Hostess fell short on with the union contract will not be a problem for a company that can execute efficiently.
While that is certainly not the only possible outcome, I think it is a likely one.
We don’t typically count it against employees for future hiring when that happens though.
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