The real world apparently. But if your company is far enough in la-la land and the disconnect between profit and reality is big enough, weird things happen.
If a big part of the market is floating in la-la land then that’s a good impression of Wile E. Coyote before he looks down.
It’s actually a mixed bag. It’s complicated, but part of what influences investors to either punish or reward public companies for mass layoffs is whether other companies in their sector are also doing mass layoffs. Outliers are punished. Trend-followers are rewarded. That’s part of what makes layoffs contagious.
What is this magical place where saying you do layoffs lowers the stock price. I’d like to go there.
The real world apparently. But if your company is far enough in la-la land and the disconnect between profit and reality is big enough, weird things happen.
If a big part of the market is floating in la-la land then that’s a good impression of Wile E. Coyote before he looks down.
It’s actually a mixed bag. It’s complicated, but part of what influences investors to either punish or reward public companies for mass layoffs is whether other companies in their sector are also doing mass layoffs. Outliers are punished. Trend-followers are rewarded. That’s part of what makes layoffs contagious.