I keep hearing that the reason this company does layoffs is to help the stock price. But since they never do a formal press release announcing the layoffs, how can layoffs possibly affect the stock? I thought the whole point of laying people off a little at a time was so that the public doesn't find out.
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Immediate influx of cash? Help me understand because paying out severance seems like it wouldbe an immediate outflow of cash?
They vote on it to happen
Layoffs give them an immediate influx of cash improving the bottom line making the company seem more profitable and they don’t announce layoffs cause layoffs sound like your in trouble.
Only matters if they make an announcement. Investors love layoffs. Some clients might be alarmed though (probably why they are doing it this way).
The way they do it where there is no announcement, only collapsed productivity and failed initiatives due to no staff, means both investors and clients are disappointed.