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I am in the same camp as you. But I think the approach of "cut x% over and over" to keep the stock afloat at some point is not going to work forever, since a co

I am in the same camp as you. But I think the approach of "cut x% over and over" to keep the stock afloat at some point is not going to work forever, since a company is not very competitive at 0% of its original engineering / get things done work force. Heck if the markets were truly free markets and stock price was based on fundamentals, we may even start to see highly paid senior leadership cuts over lower level employees. Call me crazy.

hello_moto 4y ago
> Heck if the markets were truly free markets and stock price was based on fundamentals, we may even start to see highly paid senior leadership cuts over lower level employees. GOOG did this. Lots of Directors and VP got cut. META "flattening" will impact highly paid senior leadership as well.
MuffinFlavored 4y ago
> But I think the approach of "cut x% over and over" to keep the stock afloat at some point is not going to work forever, since a company is not very competitive at 0% of its original engineering / get things done work force. Let me ask you this. If we can correlate (which I think we can) "a tech company should have X headcount when the Federal Funds Rate is 0.25%" and "a tech company should have Y headcount when the Federal Funds Rate is 5.25%, where X is less than Y", I'm going to guess most tech companies just play it by ear/quarter by quarter (like the rest of the economic/financial markets based on all sorts of reports/data that come out incrementally over the year) Right now, maybe companies haven't done enough layoffs to get their headcount to where it needs to be if the Federal Funds Rate is the full blown "doomsday" terminal 5.25%. Maybe companies are doing it incrementally and waiting to see if the Fed will pivot, because they have to keep in mind how expensive re-hiring people to chase growth will be?
- beiller 4y ago
  Not sure I can correlate these things. We just have 1 little data point, a recent surge of articles about layoffs in the news. The real labour stats are showing record employment levels. Would it make sense to hire as many people as possible right now, to lock their salaries in at a much lower price than it will be in the future, due to inflation (if they think the pivot is coming)? Just throwing random ideas out but I do know one thing, I know very little :P
c23gooey 4y ago
> we may even start to see highly paid senior leadership cuts over lower level employees Thanks. I needed a good laugh this morning

hello_moto 4y ago

> Heck if the markets were truly free markets and stock price was based on fundamentals, we may even start to see highly paid senior leadership cuts over lower level employees. GOOG did this. Lots of Directors and VP got cut. META "flattening" will impact highly paid senior leadership as well.

MuffinFlavored 4y ago

> But I think the approach of "cut x% over and over" to keep the stock afloat at some point is not going to work forever, since a company is not very competitive at 0% of its original engineering / get things done work force. Let me ask you this. If we can correlate (which I think we can) "a tech company should have X headcount when the Federal Funds Rate is 0.25%" and "a tech company should have Y headcount when the Federal Funds Rate is 5.25%, where X is less than Y", I'm going to guess most tech companies just play it by ear/quarter by quarter (like the rest of the economic/financial markets based on all sorts of reports/data that come out incrementally over the year) Right now, maybe companies haven't done enough layoffs to get their headcount to where it needs to be if the Federal Funds Rate is the full blown "doomsday" terminal 5.25%. Maybe companies are doing it incrementally and waiting to see if the Fed will pivot, because they have to keep in mind how expensive re-hiring people to chase growth will be?

beiller 4y ago
Not sure I can correlate these things. We just have 1 little data point, a recent surge of articles about layoffs in the news. The real labour stats are showing record employment levels. Would it make sense to hire as many people as possible right now, to lock their salaries in at a much lower price than it will be in the future, due to inflation (if they think the pivot is coming)? Just throwing random ideas out but I do know one thing, I know very little :P

c23gooey 4y ago

> we may even start to see highly paid senior leadership cuts over lower level employees Thanks. I needed a good laugh this morning