[jakarta]

Looks like the stock is up 11% on this news. Does this and the the staff cuts at X demonstrate you can take out significant numbers of engineer without drastically impairing the user experience?

I doubt most tech execs would have the wherewithal to make this kind of decision but it's clearly the case that many big tech cos staffed up too hard during the pandemic with average salary per employee rising too much

[Macha]

It demonstrates that investors see expenses go down and therefore want to buy more stock.

Whether it's because they believe correctly that Grindr is overstaffed, believe incorrectly that Grindr is overstaffed, or just intend to sell again before the consequences become clear is something that will only become clear in time.

[throaway920181]

Yeah, this is nothing new. Stocks always bump on layoff news.

[jakarta]

it demonstrates that investors want to see a return on their investment more quickly in a higher cost of capital environment. Look across tech, all of these companies staffed up hard, raised at too high of valuations, and are now fat with slow growth and no profitability.

[Macha]

Even in ZIRP times, layoffs resulted in stock price growth also. See for example Amazon's Feb 2018 layoffs which caused their stock price to jump from $70 to $80.

[pydry]

It suggests that unions are a mechanism for transferring wealth from stocks to salaries.