Klarna says its AI assistant does the work of 700 people after it laid off 700 people::undefined

  • ???@lemmy.worldEnglish
    0·
    1 year ago

    I would really appreciate it if anyone could share some video or article or something that explains the relation between stocks and layoffs.

    • plz1@lemmy.worldEnglish
      0·
      1 year ago

      I don’t nave a citation, but in general, layoffs are usually used to cut costs. Spending less means more profits. More profits generally means the company looks better to the investors, and hence, better stock price.

        • mbp@lemmy.sdf.orgEnglish
          0·
          1 year ago

          Companies will time layoffs to get a better profit in the next couple months to report better quarterly or yearly earnings reports. How those earnings reports turn out directly affects the stock market performance, which in turn makes the shareholders significantly more money.

          This is most effective if somebody’s trying to pump the stock value before jumping ship in the most egregious cases.