what happened? wouldn't layoff pump the stock price?
11 replies (most recent on top)
I think what @aa was eluding to is almost always when companies announce layoffs their stock will go up.
In OT's case if the stock didn't go up it is because like @ad said..Wall Street just ain't buying the OT story anymore. The Street now sees the same pattern with OT.
O.P.U. D. They over promise and under deliver have huge debt, have no new logos and flat revenue. And now, even layoffs aren't moving the needle. This sh*t show is coming to an end soon one way or the other.
@d4 Well, that's a lie.
Every time the stock dips, there's a layoff. Every time the quarter ends, there's a layoff. OT is known for constant layoff cycles. Why lie about something so blatantly obvious?
Stock price has nothing to do with layoffs. This has everything to do with private credit/equity and AI bubble appearing to let out some air. All SaaS and tech is down. buckle up at its gonna get bumpy.
They take the money from the riffed employees and make sure they can give all the executives raises and bonuses for them to convince shareholders we are doing well to pump up the stock. It takes time. Reality doesn’t matter. Executives don’t let the truth get in the way of a compelling story.
That's because the layoffs does not improve things as seen from previous years. Why do you think all the layoffs all done in stealth or push for employees to resign via RTO changes.
@af (And also if you don't want AI used nor involved in your stuff - including support requests maybe get an Anti-AI clause in your contract pronto). Your data may not be used, but, you can still be a guinea pig for agentic AI or at risk of people misusing external tools.
OT will still likely ignore it - but if it's in the contract at least you get something back.
Any customers reading this? Given all this uncertainty, are you still willing to invest in OpenText projects for missions critical tasks? Even with huge discounts?
@OP The market is noticing that all OTEX can do to improve numbers is to lay off, and companies like that are not good investments.
The AI excuse is not working because OTEX AI is complete BS.
reached it's 52 week low today. I, too, thought the news of layoffs might cause it to rise up a little bit
Stock will go under $20, then we’ll sell off SMBC
layoffs will continue until stock and morale improve