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> and Western CEOs do get "pay cuts" since they're paid in stock that can go down. Has this layoff fad negatively impacted share prices? My impression is that
by yellowapple 3y ago
> and Western CEOs do get "pay cuts" since they're paid in stock that can go down.
Has this layoff fad negatively impacted share prices? My impression is that stocks have been going up as a result, because the short-term bump in profit looks superficially good on paper and investors like that.
- cmcaleer 3y agoSee ticker NYSE:SNAP who just announced 10% layoffs today. Down 2%. See also NASDAQ:PYPL (layoff announcement 30 Jan). Such announcements usually happen in or around earnings (Snap’s are tomorrow for example) so the volatility around these announcements frequently can be more related to surprise from news. I think it can have an outsized bump in companies which appear to have obviously overhired expensive staff, and that otherwise have a good outlook. Cutting jobs out of desperation is bad. Fat trimming is good and healthy for a company; cutting off limbs to say that you’ve lost weight is not.
- d1sxeyes 3y agoYes but big picture, neither the SNAP nor PYPL announcement has any real impact on the Q-o-Q trend.
- astrange 3y agoThe layoff is more a result of share price going down.