• 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…