• bearboiblake@pawb.social
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    4 hours ago

    AAA profits are higher than ever. Layoffs are tremendously inefficient. They do nothing to reduce costs long term, and can actually lead to increased costs. There is a good amount of economic research which demonstrates that.

    Layoffs are corporatist virtue signalling.

    • rafoix@lemmy.zip
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      5 hours ago

      Shareholders only want short term gains so they could sell their shares and win big.

      Long term goals are for the suckers that bought the artificially inflated stocks.

      • bearboiblake@pawb.social
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        4 hours ago

        Layoffs actually tend to artificially deflate stock prices as it’s seen as a signal of a company in financial distress - this is actually one of the reasons why industries tend to do layoffs simultaneously across multiple corporations. Of course this can be used to turn a profit through short selling but you’d need to have some sort of prior knowledge to set up the short positions prior to the layoffs being announced.

      • bearboiblake@pawb.social
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        4 hours ago

        Oh wow, you’re right, why the heck did I think it was the opposite? I’ve been misusing that word for years. Thanks for letting me know!