Executives care little about the stakeholders: the employees, the customers, the community. It's their company, too. They only care about investors and themselves. People who "own" pay a lower tax rate than those that "work". Let's fix that and make things great again.
Maybe he could destroy his wealth to keep the employees around a bit longer but it's better for everyone if they move on and the company has a legitimate opportunity to survive. Besides people don't want to be on corporate welfare anyways, they'd rather be part of a company where they can add meaningful value.
a product line that is still expected to make $6B this year plus a bunch of other massive IPs. Come on, if he can't keep the team together with that budget then he should step aside and let someone in charge who can.
Funny. Those companies don't seem to be hiring. Everyone is doing layoffs. Maybe you said that wrong? People running companies don't feel obligated to employ, therefore everyone is now Someone Else's Problem.
Although there is a slight (almost negligible) uptick in job postings, the salaries for those jobs is rapidly declining.
He is - the stakeholders are his shareholders, who don't want him to run a loss, and to whom he is responsible.
A minority of people (shareholders) holding the majority of people (employees) at gunpoint.
A company raking in 5-6 billion per year can't find any profitable bets to make? Possibilities to invest in? All they can do is cut?
LOL. If you're that bad at capitalism then please resign and let someone else give it a try.
Reminds me of PG&E. So bad at being a for-profit electric company they need constant state handouts to guarantee profits. They made bad contracts so they need a PCIA fee for not selling me electricity. Hedging? Severing contracts? Arbitrage? Forecasting? Never heard of those, now make with the free coin! My son... if you are that bad at capitalism shut it down!
I agree with Warren Buffet's take here. A company that cuts or can only pump dividends is basically saying "we can't figure out how to make productive use of people and/or cash". What an unbelievable joke.