6 ms·
Economics is hardly a reproducible science, but an American company has basically instant access to 350 million consumers (and workers) with no language barrier
by torben-friis 3mo ago
Economics is hardly a reproducible science, but an American company has basically instant access to 350 million consumers (and workers) with no language barrier and little inter-state red tape.
It's hard to imagine that this isn't a larger differentiator than the ability to fire hundreds at will.
- infecto 3mo agoYou would be surprised. Don’t think about it as firing but also being overly cautious. If you run a division in the EU you are overly thoughtful for every single HC you add. You don’t take risks because that HC at minimum is going to cost a year of severance. It’s a balancing act, maybe less new jobs but you get less layoffs.
- tonyedgecombe 3mo agoPresumably you aren’t paying 52 weeks of severance to someone you hired three months ago.
- infecto 3mo agoThat’s right but depending on country there may be other legal requirements necessary so the costs tend to add up quickly and on average when you peak behind the curtains at an EU company you see it’s often easier to retain low performing members than it is to go through legal expenses and the notice period. You tend to be more thoughtful if you want to add HC on that region and avoid restructuring the company. Maybe it works out on average but there are distinct pros and cons. On the net you get less job creation, less innovation and on the flip employees have more protection from being fired.