Greedy lay off

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A Greedy lay off means massive lay offs of employees during a profitable fiscal period. This is a quite common practise in industrialised economies to boost stock value to yield valueble bonuses and greater stock option gains to the highest management.


This is a non-sustainable way to develop a company to perform well and the primary motivation is to boost stock value temporarily without caring about the well being, dedication and security of the workforce after the lay offs.


The highest management usually tries to justify greedy lay offs by referring to intensified competition "foreseen" in the industry in question.

Also restructuring and function redundancy is often referred to especially after w:mergers.


Supposing that the required data is available, a numeric, comparable indicator can be calculated.

The most apparent ratio to describe the aggressiveness of lay offs is to

  1. Calculate percentage of fired persons of total staff
  2. Relate that to the profit margin which in turn is
  3. The ration of earnings' compared to net sales

futher on this could be evaluated in the context of general performance in the industry (average profit margins), historical development and numerous other things to support the Accusation or Defense.