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Beneath the spectre of a looming recession, Microsoft announced that it would lay off 12,000 people in January 2023. Just a few days later, Amazon announced it would lay off more than 18,000. These measures could help the tech giants reduce costs and weather the downturn, but they also carry risk. "A layoff can be an information signal," said Elena Obukhova in an interview with Business Insider. The Associate Professor of Strategy and Organization at Desautels cautions that layoffs are a sign of a company鈥檚 solvency or future direction. Layoffs can increase the workload of remaining employees and disrupt their connection with their team. Companies should be mindful of this and seek to make sure that the layoffs do not completely destroy people's sense of belonging and community.聽