How did layoffs become the answer to every business problem?

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READ: The short-term interest of financial investors is now what rules every organisation, which is bad news for employees.

Analysis: the short-term interest of financial investors is now what rules every organisation, which is bad news for employees

From RTÉ Radio 1's The Business, Elaine Burke from Silicon Republic and Liz Carolan from Digital Action on the current wave of layoffs in the tech sector We need your consent to load this rte-player contentWe use rte-player to manage extra content that can set cookies on your device and collect data about your activity. Please review their details and accept them to load the content.Manage Preferences

So how do financial investors reach into firms? Well, the dominant measures that investors use to value companies actually steer corporate leaders away from internal firm investment and long- term, value creating activities. In particular, popular financial measures are ratios, comprising of a numerator and denominator which are an indication of investor returns and costs respectively.

 

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