No, it’s also bad for shareholders. Shareholders need to see the numbers go up in order to get returns on their investment, either in the form of buybacks or dividends. A company that isn’t seen as worth investing in will show a decline in share price, causing shareholders to lose money.
Would the investors not risk adjust? Layoffs mean the company’s output is shrinking, not growing. They get a short term savings at the cost of long term productivity.
No, it’s also bad for shareholders. Shareholders need to see the numbers go up in order to get returns on their investment, either in the form of buybacks or dividends. A company that isn’t seen as worth investing in will show a decline in share price, causing shareholders to lose money.
Would the investors not risk adjust? Layoffs mean the company’s output is shrinking, not growing. They get a short term savings at the cost of long term productivity.