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newsomix9xltoday at 6:37 PM1 replyview on HN

That's odd, I seem to see the incentive to fire people with stock value improving as a result.

And since management is often paid in stock, they seem to care more about stock price than this "years of salary and paperwork" cost you mention.


Replies

creatotoday at 9:59 PM

You're conflating two things (probably intentionally, but I'll go with it). If you are firing someone without replacing (a layoff), then presumably, that person cost more than the value they provided, and so laying them off should improve the value of the business (after incurring the costs the parent post mentioned).

If you are firing someone to replace them with someone else, you are incurring a lot of cost (hiring is time consuming, difficult, risky, and requires a ramp-up time before the new hire is productive), and hoping that the long term benefits outweigh that cost.