Swiggy possible layoffs
This may sound like a dumb question, but why do these companies fire just before the IPO? isn't an IPO a good thing? More cashflow. Shouldn't they be taking care of their employees who made it reach there?
What exactly is the thought process behind this mass layoff before IPO?
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Even with Swiggy news, there's Zomato
Their paid SEO game is crazy
Swiggy is the dark horse that is better than Zomato. Zomato is a sh** company running on InfoEdge fumes.
The whole point of IPO is to get filthy valuations. So to get it there are two ways :
- Become extremely high revenue and profit making business machine , which is not possible if you’re not like of Nvidia 🙂
- Cut cost 💲, every saving is worth equal earnings.
So company tend to do major cost cut before IPO to improve balance sheet on paper to get valuations (honestly what they don’t deserve)
During IPO every team is vulnerable if they aren’t directly contributing towards revenue generation.
In short, it makes line go up!
Companies after a certain stage only care about the elite "stake holders", CEO's role literally becomes maximise returns for these ~~leeches~~ holders. ~~Firing~~ Cutting costs increases the said returns, hence it's a popular strategy pre-IPO
Investors dont care about people. They care about profits
Zwigato
Layoffs decreases the cost of the company which in turn fuels profitability, and investors use a popular term 'eps' to value the company. Beacause of layoffs their net ebitda increases which increases the eps and investors blindly value the company based on the basis of that without actually knowing what in reality they are doing and why would they be interested they just want their share proces to go up and nothing else...