Wall Street Loves Layoffs

I never understood why Wall Street loves when a company lays off people.

A company that imposes layoffs is obviously in some trouble, and therefore they need to cut staff. But, also everytime a company sacks people, the stock price goes up.

When Scripps announced that they were doing away with Scripps News and hundreds would be kicked the curb, the company stock price went up.

When Scripps announced the cuts, the stock jumped up.

The news of layoffs got the Scripps stock back over $2 a share. While that’s still very low, staffers getting cut should know that while they are losing their jobs, Adam Symson made the shareholders happy.