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So, basically a Perverse Incentive [0] - a systemic problem. But the firings are externally visible as well - and it's also externally visible whether the firi

by hooby 4y ago

So, basically a Perverse Incentive [0] - a systemic problem. But the firings are externally visible as well - and it's also externally visible whether the firings occurred with or without a hiring freeze in place beforehand. And whether the number of people fired is larger - or smaller is visible as well (and after a hiring freeze and counter-measures it's always gonna be somewhat smaller). And one of those two options signals greater unpredictability and volatility then the other - which to investors means higher risk, right? [0] https://en.wikipedia.org/wiki/Perverse_incentive https://en.wikipedia.org/wiki/Perverse_incentive

mschuster91 4y ago
> But the firings are externally visible as well - and it's also externally visible whether the firings occurred with or without a hiring freeze in place beforehand. Yeah, the key thing that a company this size has to take care about is to announce the news to everyone - employees, media and investors - at the exact same time, so no one can claim that "insider trading" has taken place. > And one of those two options signals greater unpredictability and volatility then the other - which to investors means higher risk, right? Yes but no at the same time. The playing field is theoretically the same for every investor, which means that there is always a non-zero chance of a company announcing massive layoffs.