this post was submitted on 08 Apr 2026
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[–] bearboiblake@pawb.social 11 points 3 days ago* (last edited 3 days ago)

Layoffs actually tend to artificially deflate stock prices as it's seen as a signal of a company in financial distress - this is actually one of the reasons why industries tend to do layoffs simultaneously across multiple corporations. Of course this can be used to turn a profit through short selling but you'd need to have some sort of prior knowledge to set up the short positions prior to the layoffs being announced.