(Solved): During the recession of 2008-2009, many reputable companies suffered bankrupteies while others strug ...
During the recession of
2008-2009, many reputable companies suffered bankrupteies while others struggled to survive. Of those that did remain, some chose to redace the size of their workforces significantly. Imagine yourself helping run a company during such a recession. Imagine the company that has been doing fairly well, posting profits every quarter and showing a sustainable growth expectation for the fisture; however, the general uneasiness in the market has caused the eompany's stock priee to fall. In resposse to this problem, the CEO decides to lay off some of her employees, hoping to cut costs and to improve the bottom line. This action raises investor coefidence and, coesequently, the stock price goes up. What is your impressioe of the CFO's decision? Was there any kind of ethical lapse in laying off the employees, or was it a practical decision necessary for the survival of the company?
