Mass layoffs happen for all kinds of reasons, be it because of a bad financial bet, a failed game, a deal falling through, poor planning, or any number of other things. But when they do, human beings find their lives upended in response.
It shows investors that the company is reeling in their spending to become more lean, leading to the perception of better profits. You’ll notice that after most layoffs the share price increases.
Remember, the only product that’s important to publicly traded companies is good investor sentiment, everything else is secondary.
It shows investors that the company is reeling in their spending to become more lean, leading to the perception of better profits. You’ll notice that after most layoffs the share price increases.
Remember, the only product that’s important to publicly traded companies is good investor sentiment, everything else is secondary.