Recently, there have been HUGE layoffs in the tech sector.

Between Meta, Alphabet, Microsoft, and Amazon there have been around 70,000 layoffs.

That is more people than the TOTAL population of 30+ different countries!

I have written about how these mass layoffs could fuel competitors, and we are seeing this play out now.

In some of the above-mentioned companies, it has been described as the Hunger Games as employees fight internally to "prove" they should remain.

Between fear of being laid off and what is becoming extremely toxic environments as fear takes over, other competitors are taking advantage of the chaos.

Intuit's Approach

Instead of hiring people for "Fake Work", Intuit had a much more practical course of action over the past few years.

Intuit decided NOT to purposefully overhire with no plans for real work, and instead became very intentional about how it chose to grow its business.

It's also interesting to see that, despite economic hardships, Intuit has NOT been forced to have any major layoffs.

In 2019, Sasan Goodarzi (CEO) believed that AI would be the next major innovation to take off.

At that time, Intuit began shaping their business to utilize AI technology in their services.

Today, it is paying off.

According to Goodarzi, "It's actually become easier (to gain AI talent) because of all the tech layoffs, because of the uncertainty the layoffs have caused. It's getting people to raise their heads who wouldn't (normally)".

He further said, "it's just easier to recruit folks that still have jobs".

What he is saying is that there is so much uncertainty, toxicity, and fear, that people who normally would NEVER consider leaving a large tech company are now MORE than open to look at other options.

This means that companies like Meta, Amazon, Microsoft, and Alphabet aren't just losing people from layoffs, but they are also losing talent because OF the mass layoffs.

I said it before in 2022, and I'll say it again -

Mass Layoffs are an indicator of Leadership Failure.

The Science At Play

When you look at what is happening, it is not surprising to see that Intuit is able to easily poach talent from some of the largest organizations in the world.

There is a lot that people Psychologically want.

People want to feel like they are valued.

They want to feel safe at their workplace.

They want to be a part of a united effort to accomplish something important.

Mass layoffs show people that they won't be valued at a company.

The toxicity that ensues creates fear, panic, and chaos.

People feel ANYTHING but safe, and it prevents them from accomplishing their highest productivity.

They see warfare internally, and it doesn't sit well.

The people that survive at companies like this are cutthroat, and this further prevents unity and productivity.

The people who are the best capable of overcoming these challenges are already looking for other options.

When they find someone who appears to be a Legendary Leader, they are more than happy to jump ship.

Intuit's Leadership showed they have been acting as Legendary Leaders during this time.

When other companies were wasting resources, Intuit was strategically building.

While other companies are "becoming leaner and efficient" by doing extreme layoffs, Intuit instead had a calm composure and continued to grow.

(PS - Leaders should be aiming for the highest levels of efficiency from the start, but if efficiency is their goal "now" what was their goal before? Inefficiency?)

Intuit has a completely different environment that provides all the things people seek.

A unified front, goals that have been planned for years, a show that people are important.

It is no surprise to me that Intuit is having no problem gaining top AI talent.

What I can also tell you is that Intuit isn't the only company recognizing this.

Final Note

There are always two options - Mediocrity and Legendary.

During ANY economic turmoil, Leaders will show themselves as one or the other.

Those who are Mediocre will see undue stress and only problems during these hard times.

Those who are Legendary will see extreme success and the economic changes will act as jet fuel to their business.

What I pose to you - will you be Mediocre during these times, or will you Rise Up as a Legendary Leader?