Companies are no longer grounded in reality.
My roommate recently came home pale-faced, like he’d seen a ghost. More like witnessed a massacre. Mass-firings were just done at his company. His job, he’d been assured, was safe. All of his coworkers weren’t so safe, and he had to get texts and phone calls from his work-friends, people he’d worked alongside for years, people he‘d gone out to have drinks with, learn they were no longer employed. To say he had survivor’s guilt would not be hyperbole.
Was this because the company had fallen on hard times? The pandemic has been rough for a lot of industries. No, actually, the company had turned a very nice profit both last year and previous, even in such a troublesome market.
The problem was, you see, the company’s stock price hadn’t risen quite as high as had been projected. They’d made money, sure. Quite a lot of money, in fact. But too many people had projected, i.e., bet the company would do better.
How did the company offset this “loss”? Easy: fire people. Quickest and easiest way to pad the numbers.
No but you don’t understand stock had fallen a percentage point! There was no other way!
We see it all the time. Hugely successful companies reporting ‘record-breaking’ profits then fire huge segments of their workforce - the very people responsible for those record-breaking profits. Why? The money “saved” on personnel costs can boost the stocks even higher!
If your company is struggling, not turning a profit, losing money, people expect layoffs. But to work hard, be successful, your company churning along strong and healthy, and you still lose your job? For what? Because half a percentage point that was dictated by speculation, guessing, by gambling that things would go up or down a certain amount on a graph of rich-people feelings?
I wonder how next year’s speculations will be affected with the information that the company laid off a lot of the people responsible for last year’s profits? Probably not much because the workers are just the components at the company; it’s the leadership that drives the ship, that makes the successes.Those leaders whose bonuses are coincidentally decided by, among other things, the stock price.
Companies are no longer grounded in reality.
