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Message: <blockquote data-quote="Ruin Explorer" data-source="post: 9218459" data-attributes="member: 18">Based on what I've seen, Wall Street sees smaller layoffs as unqualified, unmitigated good. They don't need an actual reason - if you do layoffs, even there's no real reason from the perspective of someone expert on that company, the stock price will almost inevitably go up. It's a great way to get a boost to your valuation in the shorter term.It is true that larger layoffs need an accompanying story to make them not raise some concerns, but Wall Street isn't typically going to look into exactly where those layoffs are coming from, or if they really make sense. So long there's a plausible explanation, it goes back to being an unqualified good, and years later will we see a story in the WSJ or Bloomberg saying "Oh yeah that company cut the wrong parts whoops lol". Here there is a plausible explanation - Hasbro's toy divisions were doing poorly, so Hasbro is doing layoffs - doesn't really matter if those layoffs are in the right place in the short term.Not really. Successful companies do layoffs at times. Less often, but they do them. It boosts your valuation even if you don't need it, because your execs will be seen as "hard-nosed" and keeping the company "lean", even if that's total bollocks. It also tends to be a bit of a trendy thing. If you don't do layoffs when others do, is it because you're doing good, or < spooky voice > because you're a bad, lazy CEO who doesn't have the iron balls needed to take hard manly choices (sexism intended in this worldview).</blockquote>

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