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by dan-robertson 698 days ago
If the company is public, one can simulate the scheme by buying their stock, I guess. Taxes may be different and phrased like that, it seems weirdly risky to buy more of the thing you’re most exposed to (if the company lays you off, the stock may be down too).
1 comments

> if the company lays you off, the stock may be down too

Don't most layoffs make the stock go up?

Layoffs generally imply the company is contracting rather than expanding.
Depends on if you are cutting fat or cutting muscle.
The Iron Law of Bureaucracy implies it's usually the second one though. If the company isn't already dying then the insiders will fight against cuts until it is.
TLDR: Research says no

Some companies experience short-term improvements in price as their costs drop, but usually it has a longer-term impact on morale and productivity that takes longer to play out. Additionally, layoffs are typically performed on unhealthy companies (eg. not usually companies like Google and Meta that print cash and have huge margins), and unhealthy companies typically have other secular or structural issues beyond too-many-employees.