Layoffs: How does it affect stock prices

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As the bear market rages on, more and more companies have been laying off chunks of their workforce. On the one hand, layoff is the measure ... Show More

As the bear market rages on, more and more companies have been laying off chunks of their workforce. On the one hand, layoff is the measure of cutting costs and an attempt to make every penny count; On the other hand, some investors may see layoffs as an indicator of instability and bet against it.
According to a study by American economist Wayne F. Cascio, "larger and permanent layoffs" often led to worse stock performances. The article notes another study in which 300 companies in the U.S. and Japan saw shares fall after announcing layoffs.

Here are some examples for you to study:
$HP Inc(HPQ.US)$ announced cutting 5000 employees on Nov. 22, Stock Price +0.75%
$Amazon(AMZN.US)$ announced cutting 10000 employees on Nov. 16 , Stock Price -1.84%
$Cisco(CSCO.US)$ announced cutting 4100 employees on Nov. 16, Stock Price -1.14%
$Meta Platforms(META.US)$ announced cutting 11000 employees on Nov. 9, Stock Price +5.18%
$Twitter (Delisted)(TWTR.US)$ announced cutting 3700 employees on Nov. 4

Are the recent layoffs going to be big problems? Or they're just temporary turbulence?
Is it a positive or a negative catalyst for stocks? How would you use the info in investment decision making?

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moom lives

01/11 15:11

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$SPDR S&P 500 ETF(SPY.US)$$Invesco QQQ Trust(QQQ.US)$$Amazon(AMZN.US)$$Microsoft(MSFT.US)$$Apple(AAPL.US)$$Tesla(TSLA.US)$

Layoffs: How does it affect stock prices

Moomoo Learn

01/05 11:34

Learn of Today: Amazon to slash more jobs. What to learn from it?

$Amazon(AMZN.US)$ is laying off more than 18,000 workers, much more than the 10,000 previously planned.
“These changes will help us pursue our long-term opportunities with a stronger cost structure.” Said its Chief Executive Officer Andy Jassy in a memo to staff.
The peak of employee size occurred in Q3 and Q4 in 2021, which is also a turning point when the financial report shows a year-on-year decline in operating profit.
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Layoffs: How does it affect stock prices

Meltyy

12/06/2022 12:20

Amazon Layoffs May Reach 20,000, Double The Number Initially Reported

$Amazon(AMZN.US)$ could lay off as many as 20,000 employees in the coming months, double the number initially reported, according to Computerworld, an information technology publication.
Earlier this month the New York Times reported the retailer would lay off about 10,000 corporate workers, primarily affecting employees in the retail and human resources divisions, as well as those who work on Amazon devices such as the voic...

Layoffs: How does it affect stock prices

Carlosoo

12/05/2022 17:20

GlobalFoundries Plans Up To 800 Layoffs

$GlobalFoundries(GFS.US)$$NVIDIA(NVDA.US)$$Direxion Daily Semiconductor Bull 3x Shares ETF(SOXL.US)$ Leading semiconductor manufacturer GlobalFoundries is preparing to lay off up to 800 employees, or about 5.3 percent of the company’s global workforce of about 15,000 people.
The layoffs are not concentrated in any one geographic area, according to VTDigger, the Vermont-based news site which broke the news about the number of layoffs. Bloomberg had first reporte...

Layoffs: How does it affect stock prices

101823892_antony

11/28/2022 21:14

cybernews.com/n...

Layoffs: How does it affect stock prices

oilriggerwife61

11/26/2022 10:27

during the job losses
Twitter, Facebook, Sears, CVS, Walgreens, grocery stores, oil rigger ,banks of all types, truck drivers, hospitals of any type , hotels, cars dealerships of all types, restaurants and ocean liners then schools.

Layoffs: How does it affect stock prices