In SIlicon Valley: Profits up. Employment Down.

popo writes "The New York Times (free yada yada) has an interesting report on the changing landscape of Silicon Valley tech companies: Profits are soaring but employment figures are not. This dynamic points to significant future shifts down the road for Silicon Valley companies like Electronic Arts and Cisco. Interestingly, the culprit isn't just outsourcing. Huge leaps in worker productivity and automated processes are also responsible for the decreased need for new labor."

Comments

Re:The real question

[the eric conspiracy]

Where are those profits going?

While CEO salaries are going up faster than lower level workers, the CEO salary is a cost to the corporation subtracted from the calculation of the amount of profits.

Corporate profits are used in a number of ways - funding acquisitions, paying dividends, buying back stock, etc. Generally profits end up in the hands of the stockholders in the form of increased dividends or stock value.