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> if the company lays you off, the stock may be down too Don't most layoffs make the stock go up?
by glandium 2y ago
> if the company lays you off, the stock may be down too
Don't most layoffs make the stock go up?
- AnthonyMouse 2y agoLayoffs generally imply the company is contracting rather than expanding.
- Jensson 2y agoDepends on if you are cutting fat or cutting muscle.
- AnthonyMouse 2y agoThe Iron Law of Bureaucracy implies it's usually the second one though. If the company isn't already dying then the insiders will fight against cuts until it is.
- vineyardmike 2y agoTLDR: Research says no Some companies experience short-term improvements in price as their costs drop, but usually it has a longer-term impact on morale and productivity that takes longer to play out. Additionally, layoffs are typically performed on unhealthy companies (eg. not usually companies like Google and Meta that print cash and have huge margins), and unhealthy companies typically have other secular or structural issues beyond too-many-employees.