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> Layoffs are especially hard on the performance of companies with a high reliance on R&D, low capital intensity, and high growth. Start ups are 2 out of 3. T
by maerF0x0 4y ago
> Layoffs are especially hard on the performance of companies with a high reliance on R&D, low capital intensity, and high growth.
Start ups are 2 out of 3.
The thesis is that with layoffs the outcome is worse than without. So we can make all kinds of rhetorical debates, but the data seems to suggest for some causal reason companies that do layoff do worse off in the subsequent years.
- InTheArena 4y agoStartups don't survive to later years in limited runways circumstances unless they decrease their spend. There is a survivorship bias point of view - but the critical point is that startups are not low capital intensity.
- maerF0x0 4y ago> There is a survivorship bias point of view I'm uncertain if the data has a survivorship bias or not (did not review the actual academic papers). Your and I's conjecture needn't assume it. None the less we're not talking about seed/Series A companies here. We're talking about late stage and large publics w/ 100s Millions to Billions of cash.