North American Job Market and Layoff Trends
This article discusses the current job market situation in North America, focusing on recent layoff trends and strategies companies are using.
TikTok's Alleged "Creative" Layoff Strategies
Rumors suggest that TikTok is employing unconventional methods to reduce its workforce, potentially to avoid negative publicity. These methods allegedly circumvent direct layoffs, aiming to avoid impact on the company's reputation.
Reasons for Termination
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Return to Office (RTO) Policy Violations: Failure to comply with mandatory RTO policies is reportedly being used as grounds for termination. Many companies now require employees to return to the office, with some exceptions. Amazon, for example, requires employees to be in the office five days a week. Several Canadian banks, like RBC and TD Bank, are requiring four days a week in the office.
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Personal Use of Company Computers: Using company computers for personal matters is another reason cited for potential termination. Companies often monitor activity on their devices, as they are company assets. While not all companies monitor, it's best to avoid using company computers for personal activities.
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Suspected Multiple Jobs: Working multiple jobs while employed full-time is becoming increasingly difficult with the return to office. However, it's suspected TikTok may use this to terminate employees, though this is difficult while requiring in-office work. Many companies prohibit employees from working for other companies, especially those with conflicting interests. Some companies require employees to report outside work, while others may not even require reporting if there's no conflict.
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Unauthorized AI Tools: TikTok may prohibit the use of external AI tools like GPT, requiring employees to use only internal AI tools. Many companies, even smaller ones, have developed their own AI tools. Some companies block specific AI tools, similar to how one company reportedly banned DeepSeq shortly after it gained popularity.
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Performance Issues: Consistent failure to meet performance expectations is a common reason for termination across many companies. Failing to meet expectations can lead to termination at most companies. Some companies provide multiple opportunities to improve, while others may terminate after a single instance of unmet expectations.
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Reorganization (LUOG): Departmental reorganizations can also lead to layoffs, particularly at larger companies. These reorganizations can be used to eliminate entire teams or departments, often targeting higher-level employees due to salary costs. In some cases, AI algorithms are used to identify expensive employees who are deemed expendable.
Company Monitoring and Employee Privacy
Companies have the right to monitor activities on company-owned computers, regardless of perceived privacy concerns. It's crucial to remember that company computers are not personal property, and companies can track usage.
The Trend of Foreign Companies Leaving China
Many foreign companies, particularly in the financial sector, are withdrawing from China. This includes well-known companies like Microsoft and IBM. While Microsoft retains a presence, IBM has largely closed its Chinese operations. This trend may negatively impact job opportunities for Chinese workers. While it may be bad news for the local job market, the working environment is considered more attractive due to better work-life balance and benefits.
CitiBank Layoffs in Shanghai
CitiBank recently laid off approximately 3,500 employees, effectively closing its Shanghai headquarters. The layoffs were sudden and unexpected. Employees were told at 10:30 AM that they were dismissed, despite having been told they could have months to close out the operations. However, the severance package was reportedly generous, including N+6+3 months' salary (where N is the number of years worked).
Global Layoff Trend
The global trend of layoffs continues, impacting various industries and regions. It is a widespread trend.