# Why Do Companies Overhire Just To Lay Off? | Logically Answered

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Text version: https://stenobird.com/podcast/logically-answered-7268047/why-do-companies-overhire-just-to-lay-off-logically-answered.md
Podcast: [Logically Answered](https://stenobird.com/podcast/logically-answered-7268047)
Published: 2026-07-29T08:30:00+00:00
Episode link: https://traffic.megaphone.fm/PODAGEN2842451551.mp3?updated=1778660219
Audio file: https://traffic.megaphone.fm/PODAGEN2842451551.mp3?updated=1778660219
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JSON: https://stenobird.com/v1/public/podcasts/logically-answered-7268047/episodes/why-do-companies-overhire-just-to-lay-off-logically-answered
Duration seconds: 1061

## Resource

Why Do Companies Overhire Just To Lay Off? Earn Cash Back On Stocks: Up To $5,000 Per Yearhttps://www.silomarkets.com/logicBy now, I’m sure you’ve all heard about the massive layoffs throughout the tech industry. Everyone from startups like Stripe and Coinbase to giants like Amazon and Facebook is going through significant layoffs, but this brings up the question: if these companies are supposedly run super lean, how do they end up in a position in which they overhired? Well, the answer is that a company’s labor needs can drastically change with time. For example, during recessions, people tend to switch jobs less often, they’re more productive at their current jobs, and companies are less likely to invest in experimental sectors. All of this results in a shift in the balance of employees meaning that the company no longer needs to hire as aggressively. Instead, they may even be able to scale back and maintain the same level of productivity. There are some darker reasons that companies overhire though as well such as the practice of hiring to fire. This video explains the top reasons that companies end up overhiring just to eventually lay off these people. Earn Interest From The Government & Top Corporations:(iOS App for US Residents)https://www.silomarkets.com/waitinglistpageFree Weekly Newsletter With Insiders:https://logicallyanswered.co/Socials:https://www.instagram.com/hariharan.jayakumar/Discord Community: https://discord.gg/SJUNWNtTimestamps:0:00Overhiring2:58FOMO6:02Defensive9:03Hire To Fire11:57Why Companies OverhireThumbnail Credits:SAUL LOEB/AFP/Getty Imageshttps://bit.ly/3YIULrcResources: https://pastebin.com/dxxC44DNDisclaimer:This video is not a solicitation or personal financial advice. All investing involves risk. Please do your own research. https://ww…

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