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You might be a proud and valuable person in your personal life. But for a company, you are just an asset - low yielding asset with high depreciation. So it is
by chewz 4y ago
You might be a proud and valuable person in your personal life. But for a company, you are just an asset - low yielding asset with high depreciation.
So it is rational decision for an enterprise to let you go and free some liquidity that could be deployed elsewhere. Even buying Treasury bill yields more then an employee and is more liquid option. Liquidity is important when times get tough and recession is coming..
Just face it.
And for an enterprise if competitors are letting go employees it means that they are building their war chest of liquid assets. So you have too because you have to be prepared when time comes for mergers, takeover and acquisitions....
- wmeredith 4y agoGoogle's average salary is $124k/ year and its revenue per employee is $1.365 million. Show me a t-bill with that 1100% annual return.
- chewz 4y agoBut Google is irreparable and sinking fast. The goal is to return as much as possible to shareholders during 5 years window Google still has so shareholders can better allocate capital themselves. Every 124k/year is appreciated.
- malfist 4y ago> But Google is irreparable and sinking fast So you've invested all your money on shorting GOOG?
- overrun11 4y agoGoogle's average total compensation per employee is much higher than that, around $300k IIRC. You also need to back out cost of revenue to get a more accurate picture of return.
- s1artibartfast 4y agoThe average is meaningless. What matters from the company perspective is the additional revenue for the last employee.