# Are all these layoffs really necessary? **URL:** \ **Category:** Factual Questions\ **Created:** [February 4, 2009, 12:53am UTC](https://boards.straightdope.com/t/are-all-these-layoffs-really-necessary/484337 "2009-02-04T00:53:03Z")\ **Posts on this page:** 12\ **Page:** 3
**Author:** ![Voyager](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/voyager/32/133_2.png) [@Voyager](https://boards.straightdope.com/u/Voyager)\ **Post date:** [February 4, 2009, 10:56pm UTC](https://boards.straightdope.com/t/are-all-these-layoffs-really-necessary/484337/41 "2009-02-04T22:56:52Z")
> [@MOIDALIZE](#): > > I guarantee you there are companies that are currently profitable that have or will engage in layoffs, either to clear out employee dead weight, or to drive up the stockprice a fraction of a cent. Now’s the perfect time to do it when you can plausibly claim it was because of the economy. There may be one or two like that, but when you lay off people you usually have to take a writeoff, which hurts the results for the quarter. It only helps the stock price - sometimes - if it will improve profitability. It could hurt the stock price if a layoff convinces investors that the company’s financial condition isn’t as good as thought. Mostly, however, layoffs happen because there are too many people for the current revenue. ---
**Author:** ![tim-n-va](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tim-n-va/32/3001_2.png) [@tim-n-va](https://boards.straightdope.com/u/tim-n-va)\ **Post date:** [February 5, 2009, 12:23pm UTC](https://boards.straightdope.com/t/are-all-these-layoffs-really-necessary/484337/42 "2009-02-05T12:23:16Z")
> [@BlinkingDuck](#): > > Basically, bottoms/turnabouts are formed when people stop worrying about losing/pain and start to worry that they are missing the boat. Since apparently expectations drive a lot of this, what would be the effect if all of the “experts” on TV started saying that the bottom will be February 13? (to pick an arbitrary point) What I’m trying to get at is how much is real (bad loans, etc.) and how much is just the panic strenghtening the effects. The net effect is very real in either case. ---
**Author:** ![Keeve](https://avatars.discourse-cdn.com/v4/letter/k/f07891/32.png) [@Keeve](https://boards.straightdope.com/u/Keeve)\ **Post date:** [February 5, 2009, 12:56pm UTC](https://boards.straightdope.com/t/are-all-these-layoffs-really-necessary/484337/43 "2009-02-05T12:56:56Z")
> [@ChrisBooth12](#): > > Now we all know Starbucks will never fail I don’t see how it could. Hello? Chris? I hope some day you’ll come back and tell how how you came to that conclusion. :dubious: ---
**Author:** ![Auntbeast](https://avatars.discourse-cdn.com/v4/letter/a/5f9b8f/32.png) [@Auntbeast](https://boards.straightdope.com/u/Auntbeast)\ **Post date:** [February 5, 2009, 1:43pm UTC](https://boards.straightdope.com/t/are-all-these-layoffs-really-necessary/484337/44 "2009-02-05T13:43:53Z")
> [@MOIDALIZE](#): > > I guarantee you there are companies that are currently profitable that have or will engage in layoffs, either to clear out employee dead weight, or to drive up the stockprice a fraction of a cent. Now’s the perfect time to do it when you can plausibly claim it was because of the economy. That is what my former employer did. They laid off about 20 dealers citing the economy, then cracked the whip on the remaining ones with lots more staff reductions. When the new card room opened in January, they had the gall to use the phrase “new dealers!” in the advertising. BTW, the number of dealers laid off “due to the economy” represented about 20% of the staff. Economy my ass. ---
**Author:** ![BlinkingDuck](https://avatars.discourse-cdn.com/v4/letter/b/eada6e/32.png) [@BlinkingDuck](https://boards.straightdope.com/u/BlinkingDuck)\ **Post date:** [February 5, 2009, 2:46pm UTC](https://boards.straightdope.com/t/are-all-these-layoffs-really-necessary/484337/45 "2009-02-05T14:46:13Z")
> [@tim-n-va](#): > > Since apparently expectations drive a lot of this, what would be the effect if all of the “experts” on TV started saying that the bottom will be February 13? (to pick an arbitrary point) > > What I’m trying to get at is how much is real (bad loans, etc.) and how much is just the panic strenghtening the effects. The net effect is very real in either case. They are full of k-wrap. You can try to predict bottoms in general…but you can only pinpoint the bottom through hindsight. Bad news and pessimism everywhere can be a very good thing…if the market is holding up or even rising a little and the news is all doom and gloom that could signal a bottom. Also, good news can be a very bad thing…if the market is holding steady or falling a little but everyone is proclaiming things are great. Think of it this way. If the news is really bad then picture a heavy weight on the market. If the market is holding…then it is holding WITH that heavy weight. When that weight goes away… If the news is great then it is like a force pushing the market up. If the market isn’t really going up then it is holding steady with alot of help…not good because if that uplifting force goes away… Welcome to contrarian investing 🙂 Right now the stock markets are trying to hold steady, like the DOW in the high 7000. The news is HORRIBLE! I’m not saying the market will hold here and rebound soon…but it is a likely possibility. It is possible the market will collapse some more…but my bet right now will be on it holding and rebounding. ---
**Author:** ![Really\_Not\_All\_That\_Bright](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@Really\_Not\_All\_That\_Bright](https://boards.straightdope.com/u/Really_Not_All_That_Bright)\ **Post date:** [February 5, 2009, 2:54pm UTC](https://boards.straightdope.com/t/are-all-these-layoffs-really-necessary/484337/46 "2009-02-05T14:54:02Z")
> [@BlinkingDuck](#): > > They are full of k-wrap. You can try to predict bottoms in general…but you can only pinpoint the bottom through hindsight. See _Liberace_. ---
**Author:** ![BlinkingDuck](https://avatars.discourse-cdn.com/v4/letter/b/eada6e/32.png) [@BlinkingDuck](https://boards.straightdope.com/u/BlinkingDuck)\ **Post date:** [February 5, 2009, 3:42pm UTC](https://boards.straightdope.com/t/are-all-these-layoffs-really-necessary/484337/47 "2009-02-05T15:42:21Z")
Liberace? ---
**Author:** ![Really\_Not\_All\_That\_Bright](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@Really\_Not\_All\_That\_Bright](https://boards.straightdope.com/u/Really_Not_All_That_Bright)\ **Post date:** [February 5, 2009, 3:47pm UTC](https://boards.straightdope.com/t/are-all-these-layoffs-really-necessary/484337/48 "2009-02-05T15:47:08Z")
> [@BlinkingDuck](#): > > Liberace? Liberace. ---
**Author:** ![BlinkingDuck](https://avatars.discourse-cdn.com/v4/letter/b/eada6e/32.png) [@BlinkingDuck](https://boards.straightdope.com/u/BlinkingDuck)\ **Post date:** [February 5, 2009, 4:35pm UTC](https://boards.straightdope.com/t/are-all-these-layoffs-really-necessary/484337/49 "2009-02-05T16:35:22Z")
Do I have to? ---
**Author:** ![Really\_Not\_All\_That\_Bright](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@Really\_Not\_All\_That\_Bright](https://boards.straightdope.com/u/Really_Not_All_That_Bright)\ **Post date:** [February 5, 2009, 6:41pm UTC](https://boards.straightdope.com/t/are-all-these-layoffs-really-necessary/484337/50 "2009-02-05T18:41:38Z")
> [@BlinkingDuck](#): > > Liberace? Think about the word _bottom_ for a second. Actually, I have no idea if Liberace was a bottom or a top. ---
**Author:** ![BlinkingDuck](https://avatars.discourse-cdn.com/v4/letter/b/eada6e/32.png) [@BlinkingDuck](https://boards.straightdope.com/u/BlinkingDuck)\ **Post date:** [February 5, 2009, 6:57pm UTC](https://boards.straightdope.com/t/are-all-these-layoffs-really-necessary/484337/51 "2009-02-05T18:57:08Z")
Mannn…you really need to pull your mind out of the gutter! 😉 ---
**Author:** ![Spectre\_of\_Pithecanthropus](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/spectre_of_pithecanthropus/32/12343_2.png) [@Spectre\_of\_Pithecanthropus](https://boards.straightdope.com/u/Spectre_of_Pithecanthropus)\ **Post date:** [February 5, 2009, 8:27pm UTC](https://boards.straightdope.com/t/are-all-these-layoffs-really-necessary/484337/52 "2009-02-05T20:27:56Z")
> [@Cheesesteak](#): > > A coffee brewed at home is more like 33 cents. That’s why it’s one of the first things they tell you to do when trying to save money, people drink multiple coffees a day, every day, it adds up quick, and is a simple thing to cut back on. But again, as an occasional indulgence, Starbuck’s is cheap. It’s not meant to replace the coffee you would have at home, although for some people it undoubtedly does. Also have to retract, at least slightly, my complaint that they don’t allow you to advertise your business. I was surprised and gratified to notice at a Culver City location yesterday that they were allowing it there, and I noticed several film-industry related cards. Seems like they’re actively trying to become a forum of sorts for local entrepreneurs. [Previous page](https://boards.straightdope.com/t/are-all-these-layoffs-really-necessary/484337.md?page=2)