Management often has unrealistic ideas about how the development cycle behaves, and will take contracts based on technology that no one there knows. This can often lead to bottle necking on projects, creating a large unused bench of developers. With this lay offs are common and happen once contact work gets slow. However EC does train its new people in classes of 20 to 30 people which helps build friendships and team dynamics quickly.
extensive training for new people
low pay, poor management