Comment by well_ackshually
12 hours ago
Oh, bullshit. Shareholders will literally always think the company overhired. Every single person on this website has lived through at least one instance of firing an employee and distributing his workload to the leftover employees who are usually already overworked.
Shareholders see you as useless meat to dispose, the ideal number of employees to them is ZERO.
If layoffs will pump your stock, why aren't there more? Sure there are some layoffs happening, but those could just be companies that will benefit from layoffs. Certainly there could be many companies whose stock price would drop due to layoffs and those companies just haven't done that.
They don’t always think that, since sometimes share prices decrease as the result of layoffs, which would indicate they think it’s a bad decision.
The share prices are not going down because of the layoffs, the share prices are going down because the company itself is doing shit.
And guess what: stock prices going down is just reallocating capital somewhere else.