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> Till ~2010, a layoff was a sign of failure. It meant the CEO messed up. > > In 2024, a layoff is a signal of “discipline.” Companies lay off thousands, a
by semiquaver 9mo ago
> Till ~2010, a layoff was a sign of failure. It meant the CEO messed up.
>
> In 2024, a layoff is a signal of “discipline.” Companies lay off thousands, and their stock price jumps.
Citation needed. Author started their career after 2010 so they are not basing that on personal experience. In my experience this is not true.
- RoadieRoller 9mo agoI am not OP. But to support his arguments. CEO Failure News Example (2013): https://techcrunch.com/2013/08/06/fail-week-kevin-ryan/ https://techcrunch.com/2013/08/06/fail-week-kevin-ryan/ 'Stock Price Jumps' Example (2026): https://finance.yahoo.com/news/amazon-stock-jumps-pre-market-135928134.html https://finance.yahoo.com/news/amazon-stock-jumps-pre-market... Not sure if it is the articles I picked up, but the amazon example doesn't have a single mention of Andy Jassy!
- semiquaver 9mo agoIt’s very easy to find examples of stock prices jumping after major layoffs going back may years, e.g. https://www.spokesman.com/stories/1996/jan/03/att-rings-in-year-with-layoffs-40000-to-lose-jobs/ https://www.spokesman.com/stories/1996/jan/03/att-rings-in-y... That article even says “ Wall Street, in keeping with its cheerful attitude about layoffs, […] investors bet that profit-sweetening job cuts, though perhaps not as dramatic as AT&T’s, would remain in vogue among large corporations. Large layoffs have always been looked upon favorably by investors.