Can't say for certain without seeing the financials but having the real reason for pay increases raises red flags for me. I view it as a short-term gamble that

Can't say for certain without seeing the financials but having the real reason for pay increases raises red flags for me. I view it as a short-term gamble that could potentially lead to future layoffs/bankruptcy. In a worst case scenario, would it still be okay to you if the pay increases were granted because of personal circumstance and later led to people losing their jobs?