• ShortBoweledClown@lemmy.one
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    10 months ago

    Not saying it isn’t possible, but layoffs would not be the bellwether for that. Companies lay people off all the time, even when they aren’t hurting if they think they can pad their bottom line.

    • sighofannoyance@lemmy.world
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      10 months ago

      layoffs would not be the bellwether for that.

      I guess we can at least agree, that even if a company doing lay offs isn’t necessarily going belly up, a company that is going belly up is probably doing some lay offs along the way.

      However going beyond the point we agree over… what if a lay off sets in motion a series of chain reactions:

      • reduced investor/shareholder confidence -> possibly stock/company-value tanking -> -> leading to issues with the lowered valuation and their debt, worse credit rating(?)
      • destroyed worker moral -> the best workers are more likely to leave, workers who remain having to shoulder their burden
      • less team members have to shoulder much more work (usually for the same pay)

      I am sure there are other factors and maybe some of those three above are not a factor at all…