Comment on Larian publishing director on mass layoffs: 'None of these companies are at risk of going bankrupt. They were just at risk of pissing off the shareholders'

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RememberTheApollo_@lemmy.world ⁨7⁩ ⁨months⁩ ago

No, I don’t think so. CEOs don’t just make these decisions for strictly monetary gain. Otherwise literally every company would be constantly conducting layoffs or whatever short-term tactics to push the stock up so the C-Suite could cash in.

The BoD and shareholders absolutely do have clout in company decisions, mostly large shareholders pressuring the BoD, but the a smaller shareholder selling off and helping tank stock value has power as well though unfortunately they’re usually the last to get their order in.

Would some CEO knowingly start pulling strings to maximize short term gain and sell off assets to make a buck on a company that’s not doing well? Sure. Happens all the time, Sears comes to mind as a fairly recent company that got fucked over for a buck. Toys’r Us too. But those companies were in real trouble. If Best Buy goes that way you’ll know it.

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