this post was submitted on 30 Apr 2024
838 points (98.5% liked)
Technology
60052 readers
2774 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 2 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Layoffs tend to precipitate big stock price jumps in my experience. Investors love job losses
They do, to a point.
If it's a "trim" that is a vague percentage without any standout cuts in recognized people or groups, then good. If there are recognized names or groups, but they are people associated with widely known failures, like a team whose sole responsibility is a proven financial failure, good or even better. If you have people caught up in it who are well recognized for critical successes, then the investors won't be so bullish.
Here we see two groups seen as responsible for the key success factors of Tesla obliterated, with very little external signs of why this could be a rational move. The other layoffs might have been viewed well, even if some of them were also bad news, but I think these two will be viewed as bad news.
Also, this may be seen as a missed opportunity. Tesla established SC network as the premiere EV charging solution, and made it credibly cover other manufacturers, setting it up as independently valuable with it without Tesala. Tesla ditched the entire team, putting that at risk and taking on expenses to let go of those people for long term salary savings. A different business might have sold off the group intact, not only avoiding severance expense, but also getting a big check in the process from some other company. Keeping the "business" with none of the actual people is a bizarre move.
Nailed it. This round of layoffs is not just "trimming a bloated labor force," it's cutting off investment into the future of Tesla as a company, which is a really bad business move when you had an advantage in the past but are now losing it. Turns out not only Musk is a filthy rich a-hole, he's also terrible at keeping businesses competitive. He absolutely needs to resign if Tesla wants to not fail.
Amazon has been trimming employee numbers for close to three years now. Any large layoffs now see a dip in stock, so most of the layoffs this year have been small-scale to not worry the investors.
True, at some point investors switch from "good, they are improving efficiency" or "good, they are making way for higher quality hires" to "uhh, is there a problem? Are you going to keep going and risk going under some unknown critical threshold that will impact the health of your business?".
I imagine the rules are different for Amazon. It's just a regular corporation not a vanity project.
Cutting the supercharger team could be a hedge for Musk personally. The stock tanking seems likely now, so not having this team makes them a less attractive acquisition.
Tesla valuation is beyond comprehension, I don't want to touch it.
Once again confirming how sociopathic the stock market can be.
It’s because of the massive short term gains.
I made several thousand dollars in the stock market by buying stocks that announce layoffs. They almost always jump after the announcement unless it has to do with other circumstances like bankruptcy.
They did more layoffs yesterday and the stock price went down lol
Yeah but the longer term doesn't looks good.