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Wefox CEO Dismayed with Tech Companies Firing Employees

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The CEO of Wefox, a multibillion-dollar digital insurance company in Europe, criticizes other significant tech firms for laying off thousands of workers.

The decision to fire employees in bulk, according to Julian Teicke, will not benefit those trying to cope with rising prices. Many businesses, including Meta, Twitter, and Amazon, announced the termination of a sizeable portion of their personnel owing to financial challenges. According to the businesses, layoffs will assist each of them in dealing with the dire state of the world economy.

Wefox CEO Teicke stated that he is “disgusted” by how his colleagues dealt with the issue. According to many venture investors, the ideal approach is cost minimization and employee layoffs. Additionally, employment freezes and significant labor reductions will help to balance off the rise in resource prices.

“I’m a little disgusted by statements like, ‘never miss a good crisis’ [or] ‘we have to cut the fat,'” said Teicke in an interview.

Meantime, Doug Leone from Sequoia Capital stated that investors need to create plans to cope with the economic issues in the best way possible. According to Leone, in the upcoming couple of years, those who know how to deal with the current situation will succeed more than others.

“You have a great opportunity in front of you if you play your cards right. You have an opportunity to pass ten cars. So do not waste a good recession,” he said.

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Wefox CEO dismayed by other’s decisions

Sebastian Siemiatkowski, CEO of Klarna, expressed his gratitude for his good fortune after his company cut thousands of internal jobs earlier this year. 90% of the fired employees, according to Siemiatkowski, have already secured new employment. He views himself as fortunate as a result. The mismanagement of others, however, has kept the Wefox CEO’s opinion of them the same.

“If we would have done that today, that probably, unfortunately, would not have been the case,” said Siemiatkowski.

“These are people that have maybe quit other jobs to join your business. These are people that have maybe moved to other places because of you. And these are people that have maybe ended romantic relationships,” Teicke said.

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Manager’s huge responsibility

Wefox CEO reportedly expressed dismay when he remarked that managers and CEOs significantly influence the lives of their employees. But, he said, CEOs must defend their workers. Due to the current economic troubles everyone experiences, it has even become more evident.

“I believe CEOs have to do everything in their power to protect their employees. I haven’t seen that in the tech industry, and I’m disgusted by that. These are humans. I don’t believe in mass layoffs. We’re going to focus on performance but not on mass layoffs,” he said.

Teicke claims that Wefox won’t let workers go, adding that his business has become “crisis-resistant” by preparing for the most extreme scenario. Teicke added that to maintain sustainability despite European economic issues, Wefox must continue to research the macroeconomic situation.

Photo Credit:  Wefox

Source: CNBC

Scarlet Logan is a marketing professional who loves writing. She graduated with a double major in journalism and economics.

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