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If it were as simple as “layoffs/cost cutting make stock go up” then CEO’s would have never had hiring surge during Covid. The CEO’s job is always to maximize l
by maxlamb 3y ago
If it were as simple as “layoffs/cost cutting make stock go up” then CEO’s would have never had hiring surge during Covid. The CEO’s job is always to maximize long term profits. Layoffs make stock go up only when it’s clear profits won’t change much with the layoffs. And if layoffs won’t decrease profits, why were these employees there in the first place?
- skinnymuch 3y agoDuring market growth stages, laying off would be something that would be a red flag. You only focused on a small part of the person’s comment. The comment also said when stock is going down, lay offs help. They likely aren’t talking in absolutes anyway Were there hiring surges for companies whose valuations were not going up?
- vinyl7 3y agoMaximizing long term profits hasnt been a strategy for at least 15 years now. Its all about infinite growth at any cost