It's not a refusal so much as it's really hard to fire people in Japan. CEO pay cuts don't have much to do with it either, and Western CEOs do get "pay cuts" since they're paid in stock that can go down.
> and Western CEOs do get "pay cuts" since they're paid in stock that can go down.
Has this layoff fad negatively impacted share prices? My impression is that stocks have been going up as a result, because the short-term bump in profit looks superficially good on paper and investors like that.
See ticker NYSE:SNAP who just announced 10% layoffs today. Down 2%. See also NASDAQ:PYPL (layoff announcement 30 Jan). Such announcements usually happen in or around earnings (Snap’s are tomorrow for example) so the volatility around these announcements frequently can be more related to surprise from news.
I think it can have an outsized bump in companies which appear to have obviously overhired expensive staff, and that otherwise have a good outlook. Cutting jobs out of desperation is bad. Fat trimming is good and healthy for a company; cutting off limbs to say that you’ve lost weight is not.
Yes they are and Nintendo actually needs them desperately. The company is floundering, a mere flicker of the company it once was, it needs a complete reboot
Im curious what specifically you think is going wrong. Im a Nintendo fan from the consumer side but dont follow their business, aside from being a huge fan of Iwata’s life and story.
This does seem to be the responsible thing to do if you're in charge of setting strategy and your strategy falls flat on its face. Few, if any, firings, and those responsible actually take responsibility. Does anyone have any first hand experience with this?
