Mentions of Job Cuts in Earnings Calls Hit Pandemic-Time Peak
https://www.bloomberg.com/news/articles/2024-02-02/meta-s-stock-bounce-shows-how-big-ticket-job-cuts-can-pay-off
Related:
https://finance.yahoo.com/news/meta-stock-bounce-shows-big-120219006.html
Focused Cuts and Fewer Layers: Tech Layoffs Enter a New Phase
https://www.nytimes.com/2024/01/30/technology/layoffs-tech-industry.html
Amazon, Google, Microsoft and other tech companies have been on a layoff spree this month, with the latest cuts differing from last year’s mass reductions.
https://www.bloomberg.com/news/articles/2024-02-02/meta-s-stock-bounce-shows-how-big-ticket-job-cuts-can-pay-off
Related:
https://finance.yahoo.com/news/meta-stock-bounce-shows-big-120219006.html
https://www.nytimes.com/2024/01/30/technology/layoffs-tech-industry.html
Amazon, Google, Microsoft and other tech companies have been on a layoff spree this month, with the latest cuts differing from last year’s mass reductions.
Tech Layoffs Continue to Roil Industry With 32,000 Jobs Cut
https://www.bloomberg.com/news/articles/2024-02-05/tech-layoffs-continue-to-roil-industry-with-32-000-jobs-cut
Reductions in 2024 seen as reaction to pandemic hiring bloat. AI is source of new jobs but also cause for restructuring.
Estée Lauder Surges Most Since 2011 on Plan for Job Cuts
https://www.bloomberg.com/news/articles/2024-02-05/estee-lauder-surges-on-revamp-plan-to-cut-up-to-5-of-workforce
Mass Layoffs Shouldn’t Be Routine
https://www.bloomberg.com/opinion/articles/2024-02-05/mass-layoffs-have-become-alarmingly-routine
Too many corporate leaders mistakenly believe that periodic downsizing is necessary or even beneficial.
https://www.bloomberg.com/news/articles/2024-02-05/tech-layoffs-continue-to-roil-industry-with-32-000-jobs-cut
Reductions in 2024 seen as reaction to pandemic hiring bloat. AI is source of new jobs but also cause for restructuring.
Estée Lauder Surges Most Since 2011 on Plan for Job Cuts
https://www.bloomberg.com/news/articles/2024-02-05/estee-lauder-surges-on-revamp-plan-to-cut-up-to-5-of-workforce
https://www.bloomberg.com/opinion/articles/2024-02-05/mass-layoffs-have-become-alarmingly-routine
Too many corporate leaders mistakenly believe that periodic downsizing is necessary or even beneficial.
Stock investors' reaction to layoff announcements: A meta-analysis
https://doi.org/10.1111/1748-8583.12532
Abstract
Does a firm's layoff announcement elicit a negative or a positive reaction from its stock investors? The extant empirical evidence on this question is mixed. The authors' meta-analysis of 34,594 layoff announcements taken from 126 samples featured in 78 studies reports that the average investor reaction is significantly negative (effect size of −0.549). Next, the authors use signaling theory—specifically, characteristics of the signal, the signaler, and the signaling environment—to examine variation in investor reaction. They find that investors do not react if a layoff announcement signals proactive management (e.g., cost cutting) but penalize the firm if the layoff indicates reactive management (e.g., decline in demand). The penalty is also positively associated with layoff size but unrelated to firm size. Further, investors have become less punitive over time, or if its stock is traded on an exchange in civil law (vs. common law) country. The empirical generalizations guide managers on the consequences of their layoff announcements.
Related: https://money.com/tech-layoffs-affect-stock-prices/
https://doi.org/10.1111/1748-8583.12532
Abstract
Does a firm's layoff announcement elicit a negative or a positive reaction from its stock investors? The extant empirical evidence on this question is mixed. The authors' meta-analysis of 34,594 layoff announcements taken from 126 samples featured in 78 studies reports that the average investor reaction is significantly negative (effect size of −0.549). Next, the authors use signaling theory—specifically, characteristics of the signal, the signaler, and the signaling environment—to examine variation in investor reaction. They find that investors do not react if a layoff announcement signals proactive management (e.g., cost cutting) but penalize the firm if the layoff indicates reactive management (e.g., decline in demand). The penalty is also positively associated with layoff size but unrelated to firm size. Further, investors have become less punitive over time, or if its stock is traded on an exchange in civil law (vs. common law) country. The empirical generalizations guide managers on the consequences of their layoff announcements.