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From an investor POV are layoffs an indicator that companies management feel they dont have growth prospects? Companies, especially tech companies would rarely
by Gustomaximus 4y ago
From an investor POV are layoffs an indicator that companies management feel they dont have growth prospects? Companies, especially tech companies would rarely admit this openly, e.g. how they typically hold ever growing cash rather than pay dividends.
Logically you would think now would be a great time to hire if you genuinely saw significant grow/product rollouts coming. Especially if a company is making profit and not trying to extend runway, reduce debt, in world where money costs more.
- tukantje 4y agoIn this context it is a sign they bend their knees and kiss the ring. Shareholders have been feeling that the tech workers held too much power, and companies were openly / not-so-openly having a fight with their shareholders, so to speak (especially in cases like Meta). With the new blood sacrifices, shareholders can rest assured that their profit > everything else.