this post was submitted on 14 Jan 2024
1071 points (98.7% liked)

People Twitter

5380 readers
550 users here now

People tweeting stuff. We allow tweets from anyone.

RULES:

  1. Mark NSFW content.
  2. No doxxing people.
  3. Must be a tweet or similar
  4. No bullying or international politcs
  5. Be excellent to each other.
  6. Provide an archived link to the tweet (or similar) being shown if it's a major figure or a politician.

founded 2 years ago
MODERATORS
1071
Layoff season (lemy.lol)
submitted 11 months ago* (last edited 11 months ago) by King@lemy.lol to c/whitepeopletwitter@sh.itjust.works
you are viewing a single comment's thread
view the rest of the comments
[–] stevehobbes@lemy.lol 1 points 11 months ago

Layoffs aren’t a good look for a lot of shareholders unless the org is bloated. There are a variety of metrics to compare companies against each other in terms of head count efficiency.

Company values are basically just a view of future revenues minus expenses plus/minus sentiment. If you lower the company expenses, all else being equal, the share price should go up. Those shares are worth more.

But it also might say we’re not growing as fast as we thought we would or our business is challenged in other ways which will negatively affect sentiment.

Shareholders don’t like layoffs. They would much prefer you a) hired the right people the first time, b) hired the right number of people, or failing that c) grew into the number of people that you hired.

No one loves a declining business, and many businesses doing layoffs are - either outright declining or declining growth.