seth@lemmy.world to News@lemmy.world · 5 months agoJohn Deere lays off hundreds of employees, after a $10B profit yearfranknez.comexternal-linkmessage-square81fedilinkarrow-up1785arrow-down110
arrow-up1775arrow-down1external-linkJohn Deere lays off hundreds of employees, after a $10B profit yearfranknez.comseth@lemmy.world to News@lemmy.world · 5 months agomessage-square81fedilink
minus-squareexplodiclelinkfedilinkEnglisharrow-up1·5 months agoWould the investors not risk adjust? Layoffs mean the company’s output is shrinking, not growing. They get a short term savings at the cost of long term productivity.
minus-squarechonglibloodsport@lemmy.worldlinkfedilinkarrow-up1·5 months agoInvestors buy on the rumours and sell on the news. They make money as long as the numbers go up when they’re long and down when they’re short. I think John Deere is seen as a pretty dominant company in its industry. It locks in tons of farmers into its repair/service program. I don’t know anything about the specifics of the layoffs but I’d imagine the reasoning was communicated to investors.
Would the investors not risk adjust? Layoffs mean the company’s output is shrinking, not growing. They get a short term savings at the cost of long term productivity.
Investors buy on the rumours and sell on the news. They make money as long as the numbers go up when they’re long and down when they’re short.
I think John Deere is seen as a pretty dominant company in its industry. It locks in tons of farmers into its repair/service program.
I don’t know anything about the specifics of the layoffs but I’d imagine the reasoning was communicated to investors.