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It’s all a performance for Wall Street. These companies are profitable — just check the earnings calls — but there are parts of the business that aren’t and investors want to see companies reign in spending to make that part of the business look better… except the cuts at Disney, for example, aren’t in the streaming business completely so it won’t help solve that specific issue.
So the layoffs are because Wall Street demands higher profit margins with fewer headcount. Firing people helps bump the stock price because it’s what institutional investors want. It has zero to do with whether a company if making money.
And six months from now the company’s headcount will be back where it was before the layoffs because that always happens. And BTW if you carefully read what Disney said it wasn’t 7,000 PEOPLE being let go, it was elimination of 7,000 positions which includes jobs that were frozen back in 2022.
But yeah let’s upend people’s lives in pursuit of greater profit margins because that’s great for society and really adds value to the world.
I agree 100%.
Perhaps works who participate in stock market 401k and other retirement savings plans need to speak up and start demanding their plan provider mass sell off all stocks held in their portfolios every time a major employer lays off thousands or worse tens of thousands of workers at once.
I know if would never happen. My point is to illustrate that collectively our retirement plans fund Wall Street. Shareholders get laid off by companies they invest in.
Been in entertainment my entire career and it’s always been this way.
Thoughts ?? I mean it sucks for us lol we're all out of employment and our family stability gets put in jeopardy but it wouldn't be the first time