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No. When they hire employees they (at least expect to) increase their own profit. Losses are shared between a company and the employee losing their job, income
by gbanfalvi 6y ago
No. When they hire employees they (at least expect to) increase their own profit.
Losses are shared between a company and the employee losing their job, income is (unevenly) shared between an employer and the employee, profit is exclusively for the employer.
- defertoreptar 6y agoWages and the costs of hiring/employing are a cash outflow. Losses mean that outflow is greater than inflow, so wages can be related to losses, but they are not mutually exclusive. Cuts to jobs and reduced hours can be because of losses, or they could also be due to efficiency gains, in which they could be related to profits instead. Divisions and jobs can be cut because they make neither profit or loss. Employee's don't share in losses or profits unless their compensation is somehow tied to profits.