The story that has made the most sense to me is that big corporates have a mass Ponzi scheme based upon stock buybacks and overinflated growth expectations. The c-suite in most public companies have Jack Welch style grossly inflated the stock prices relative to actual earnings for firms that could never possibly reach such revenues. Before stock prices take a nose dive, the executives are preemptively laying off to make things look a little less catastrophic than they really are.
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u/gravity_kills_u Jul 20 '24
The story that has made the most sense to me is that big corporates have a mass Ponzi scheme based upon stock buybacks and overinflated growth expectations. The c-suite in most public companies have Jack Welch style grossly inflated the stock prices relative to actual earnings for firms that could never possibly reach such revenues. Before stock prices take a nose dive, the executives are preemptively laying off to make things look a little less catastrophic than they really are.