this post was submitted on 14 Jan 2024
1098 points (98.7% liked)
People Twitter
5403 readers
1420 users here now
People tweeting stuff. We allow tweets from anyone.
RULES:
- Mark NSFW content.
- No doxxing people.
- Must be a pic of the tweet or similar. No direct links to the tweet.
- No bullying or international politcs
- Be excellent to each other.
- 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
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
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.