In spite of the fact that it has significant cash reserves, and its business is actually growing, not shrinking, the online Real Estate company Zillow has announced that it will be firing one out of every four of its workers.
The reason for Zillow gave for firing its workers: Even though the company is strong now, and has yet to be negatively affected by the economy, CEO Rich Barton is afraid that the economy will get much worse soon.
How could the economy get worse? Well, let’s suppose that a lot of companies fired large numbers of their workers, out of the worry that the economy would soon get worse. That large-scale pre-emptive firing of American workers would suddenly create a large number of people who wouldn’t have much money to spend, and would be out making it harder for people who are already out of work to find a job. That would be a good way to make the economy a lot worse pretty quickly, wouldn’t it?
Thanks, Zillow, for taking part in the self-fulfilling narrative of economic doom.
The question I’ve got in my mind is whether all those fired Zillow workers will start to use Zillow to sell the homes they can no longer afford.