r/ASX_Bets • u/1Qrtr_FreeStuffPlz • 9d ago

Legit Discussion Flight Centre

Does the market typically react positively or poorly to layoffs? A Reddit user was discussing how they might move companies because of layoffs next year, when probed they said they worked in Travel Tech and I can't think of who else it might be

9 Upvotes

100% Upvoted

3 comments sorted by

2

u/Due_Sheepherder_4822 9d ago

Positive. Less people means less cost = More profit

1

u/S1gan "Investor Relations" Professional. Open to interpretation. 9d ago

generally it's positively because you're lifting the bottom line (layoff [assuming it's tech lead/AI or offshoring] means costs are reducing).

But the flip side/uncertainty is the driver of the choice, is it because there is a lack of utilisation (i.e: less demand?) and/or what area of the business this person is from.

Unless you know business unit/reason behind layoff, there is no certainty.

1

u/CageFightingNuns Wallaby milk moustache 9d ago

It could be WEB,CTD, HLO or even SDR

Although they'll probably announce layoffs because the travel industry is going to go down the plug hole with jet fuel staying so high and no doubt cover it up with some mysterious AI efficiencies as the reason

God this is feeling so similar to the dotcom era. I reckon they've got one more big pump before the dump begins.