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So I've become pretty cynical about companies announcing layoffs. In the short term, it'll boost the stock and make the CEO look good as a result. The net effec
by cletus 7y ago
So I've become pretty cynical about companies announcing layoffs. In the short term, it'll boost the stock and make the CEO look good as a result. The net effect will be:
- A certain number of people who leave or retire won't be replaced
- Some workers will get relocated geographically and/or within the company's business units such that they'll be counted as a layoff and a new hire
- New hiring won't stop
- The company will use layoffs as a means of getting rid of a number of workers that would otherwise be legally problematic to get rid of (eg older or pregnant workers)
- Some smaller teams, projects or divisions will be sold off to other companies
Hiring is near constant. Layoffs happen in bursts. Combine this with natural attrition and not much has changed. Overall staffing levels will continue trending downward slightly with increased automation. Business as usual.
- wp381640 7y agoyour comment has no relation to what is happening at DB - they're writing down $73 billion in assets and exiting businesses they tried to expand into
- cletus 7y agoIt's entirely relevant. When I said layoffs happen in bursts, what do you think that means? It means, for a time, you stop doing something you used to do. But as time goes on you'll find new things to do. Some of those will hopefully work out. Others won't. Rinse and repeat.
- cm2187 7y agoFor the avoidance of doubt, they are not writing down $73 billions of assets, that would wipe out their whole capital base. They intend to sell or roll off $73 billions worth of RWAs.