4 ms·
>Large companies over-hire to short-term inflate the share price src on that?
by tester756 4y ago
>Large companies over-hire to short-term inflate the share price
src on that?
- hudsonjr 4y agoI don't know that they hire to inflate the share price. In good times, I have felt like that some R&D projects exist just to say "we have people working on it" for investor calls and such. In bad times, those things can get cut.
- Gustomaximus 4y agoI doubt this is true. While many variable I suspect it's more about phases. Company has a growth focus phase so the books are opened and people can hire away to get stuff done. There always more that can be done so they keep hiring, usually too many, til the company hits profit focus phase. Then they look to cut costs, of which staff are typically a large variable component, they slash numbers, again probably too much, and then continue til they return to growth focus and repeat.