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Mentions of Job Cuts in Earnings Calls Hit Pandemic-Time Peak
Friday February 2, 2024. 10:20 PM , from Slashdot
Layoffs are being mentioned on US earnings calls at the highest rate since the pandemic -- and as Meta Platforms shows, such cost cutting can pay off for investors. Bloomberg: Efforts by the Facebook parent to slash costs and refocus its business upended the lives of thousands of workers, but has since helped propel its stock 340% from a 2022 low. With an economic soft landing being the base case for many, positioning by firms to protect margins -- particularly in the technology sector -- is being welcomed by investors. Mentions of job cuts and synonyms per earnings calls this season have jumped to the highest levels since the second quarter of 2020, according to a Bloomberg transcript analysis of S&P 1500 Composite Index firms. For the technology industry in particular, 'more recent cuts come out of a position of strength,' said Wolf von Rotberg, equity strategist at Bank J. Safra Sarasin. 'Confidence in the sector appears high that growth can persist even with a smaller workforce,' he said.
Read more of this story at Slashdot.
https://tech.slashdot.org/story/24/02/02/166226/mentions-of-job-cuts-in-earnings-calls-hit-pandemic-...
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