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The Sequence of Staff Layoffs and Right-Sizing
By Investment Moats  •  January 5, 2023
I heard one rumour that when Elon Musk did what he did to Twitter, it looked horrendous to many. But there may be enough bosses out there that wonder seriously whether that is the fastest way to solving their problem. Tom Lee mention on The Compound podcast that a large company track what their employees do through all the keyboard clicks and mouse movements and realizes 80% of their employees are not necessary. If you fire these employees and the majority of your cost is staff cost (for tech firms), you can sustain your margins. This is the bull case of how EPS can look better. But it leaves a bad taste to fire employees around Thanksgiving and Christmas, but now that is after those festive periods, perhaps the firing can start. Layoffs.fyi tracks the state of the tech layoffs: Byrne over at The Diff has a good write-up...
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By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
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