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Epic Games sheds 830 people due to 'spending way more money than we earn'
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this post was submitted on 29 Sep 2023
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They aren't. Epic continues to make ever more and more record amounts of money quarter after quarter. Layoffs have nothing to do with revenue in the gaming industry.
I know that. The point was to show how absurd what they said was. And they could have said they were streamlining their business or whatever euphamism they want to use instead of lying about how profitable they are. And their investors probably would have taken that better than the company claiming that theyre "spending more than they earn."
It actually does. If profit goes down (i.e. they're still making lots of money), they do layoffs to keep profit margins at the target level. It doesn't matter if they're still making tons of money, they cut costs if they're not making as much money as they forecasted.
Correct, it's a Classic move by Capitalist scum.
In this moment, I am euphoric, because I am enlightened by your intelligence.
Lol, glad I could help.
FTFY
Its all about shareholders. Layoffs generate less costs. Less costs mean more income. More income means more dividends, more dividends means more share value.
For short term for sure.