TSMC founder Morris Chang urges CEOs to avoid hasty layoffs
Morris Chang, founder of TSMC, is telling CEOs to think twice before cutting staff, especially if they might need to rehire soon.
He says layoffs come with hidden costs like severance pay, training new hires, and losing employee trust.
This advice feels timely as tech companies are letting people go while pouring money into AI.
Chang recounts 2009 TSMC layoffs, rehiring
Chang puts it simply: "The separation expense is usually heavy. About half a year. And it takes at least half a year to train a person."
He shared how TSMC laid off around 700 employees in 2009 based on performance ratings, which sparked protests over fairness.
Many were eventually rehired, showing that quick cuts can lead to bigger headaches down the road.
Chang's takeaway? Fairness and long-term thinking matter more than short-term savings.