# Tis the Season of Layoffs By:: [[Brian Heath]] 2022-11-12 Since the Reagan era, layoffs have become an accepted practice whenever there is the perception that the economy is "down." There was a time when layoffs were not accepted practice, but let's assume that net job losses would have occurred regardless of strategy due to the economic conditions outside anyone's direct control. Which is more admirable and virtuous: everyone losing their job when the company goes under or laying people off to save the company and those left working there? Based on my experience, most people would pick the layoff strategy because they believe sacrificing the few for the many is more admirable. This is the bedtime story that many organizational leaders and managers tell themselves right before they go to sleep. However, this is a shallow understanding of the problem. If we cannot control the up-and-down cycles of the economy, the most admirable thing to do is embrace values beyond the flashing lights of the casino. Starting a company and hiring employees is always a risk, so some element of gambling is always taking place. There are smart bets and then there are greedy, uninformed bets where the person has little skin in the game. When a person is risking all of their wealth on a cognitive bias that a seven is due, it is unfortunate. When a person is risking the livelihood of others because they are delusional about the nature of business, economics, and the market, it is a tragedy. In one sense people losing their jobs is inevitable due to the economic forces (the house always wins), but in another sense, we know what a delusional gambler looks like and the pain they cause to everyone around them. A responsible gambler knows the stakes, how the game works, has skin in the game, and understands the human condition. They count cards, walk away at the right time, play the long game, and avoid winner take all scenarios. Never too high, never too low, and always assessing the situation and behavior of those around them. Compare this behavior to that of organizations in the midst of layoffs. Did they try to ride the hot hand too far without considering the cost to everyone around them when the market was bound to turn? Did they know the stakes? Did they take the time to understand how the game works? Did they value the human condition or just their own? Are the people at the top losing as much as those at the bottom? The free market and capitalism generate innovations and prosperity for many, but there are downsides. Taking equitable responsibility is one step in the right direction to mitigate the downsides of capitalism. Acting in solidarity with others is the second step. With these values, one can still beat the market while being truly admirable and virtuous. #### Related Items [[Layoffs]] [[Capitalism]] [[Virtue]] [[Solidarity]] [[Cognitive Biases]] [[Business]]