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> they make shareholders rich In that regard, I wonder if it becomes a Wall Street meme--layoffs for the sake of doing layoffs. Companies that performed layoff
by teeray 4y ago
> they make shareholders rich
In that regard, I wonder if it becomes a Wall Street meme--layoffs for the sake of doing layoffs. Companies that performed layoffs made shareholders rich, so therefore if your company isn't doing layoffs in a layoff climate it's assumed that shareholders are better off putting their dollars somewhere else.
- cyanydeez 4y agoThis currently _is_ a meme. Heck, even the fed was complaining about inflation and the unemployment numbers. It's definitely one of those "if we're not growing, we're dying, lets cut all the employees off"
- jackcviers3 4y agoIt's also what the fed wants to slow inflation.
- piva00 4y agoThat's the gist I get from currently working in a company that did layoffs, the affected number of employees will not impact OPEX in any meaningful way if the issue is cash got more expensive, even less compared to pre-2020/21 levels. But if they didn't do layoffs when earnings showed an increase in OPEX the shareholders would see it as a bad sign, so to signal to those that this is a serious-business™ the layoffs happen. Crisis of confidence are pretty well known/studied, this seems to be a flavour of trying to avoid a crisis of confidence if the herd mentality isn't followed. It all just sounds stupid, and like higher management aren't too far away from behaving like children and not responsible adults.
- simplyluke 4y agoThis is what’s currently happening at all levels. It’s why you see so many companies doing ~5% layoffs while still actively hiring for some roles.
- outside1234 4y agoNot only a layoff, but one that is roughly 7%. That's right, everyone made exactly the same mistake, and 7% is the solution.