Well I would assume it affects the company because employees have no reason to stay until their stock options vest because their options are worthless now. Als

Well I would assume it affects the company because employees have no reason to stay until their stock options vest because their options are worthless now. Also, the executives of a company care about the stock price, because if it goes too low, the investors will call for their heads. This pressure can make the executives do things like reduce expenditures and headcounts.