[chronc6393]

> One does not “simply” reduce spending.

Why does stock price go up after mass layoffs?

[bumby]

What happens when the only way to reduce spending is to reduce your assets? Seems like circular logic at that point. I suppose the market isn’t expected to be rational all the time, but eventually it is.

[justsomehnguy]

By your logic any company should just layoff everyone and profit on the stock price going to the infinity.

Company would no longer function of course but why it would matters if the stock price is through the Moon?