Just because a company can be overall profitable doesn't mean costs aren't out of control. If you make enough profits, you can literally feed money into a shredder and still come out ahead if you earn profits faster than your shredder can eat them.
Re:Why Layoffs Don't Work
by slackernews9 on Sunday March 09, 2025 @02:04PM
(#43311887)
So maybe we don't take jobs away from people with families and mortgages then, if all we have to do is sacrifice some profits, yeah? Gee, maybe the company can only make $9 billion instead of $9.5 billion, and everyone can stay employed.
What you're describing isn't out of control, all businesses have income and expenses, good management is watching both sides and building the organization that connects the two in the middle.
Sudden drastic moves if the business is delivering profits seems like the out-of-control action to take. If the business salary structure is off, or if you need to a different skill mix there are ways to shift that in a profitable business without sudden layoffs damaging the very organization that delivers your current profits.
Layoffs today seem more like execs following management fads for easy visible actions and this data would suggest that the actions are actually detrimental to company profits. Juice the numbers for a quarter but add another long term drag to the company