So here’s the plan. We all buy xerox stock. If every employee buys 5 share, the price will go up over night. Then we won’t have layoffs!
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Please, this sounds absolutely ridiculous.
Nice explanation @gzg+16BoojuP. To summary, ya’ll gonna lose your jobs so some rich dudes can make a bit more money.
OP, let me explain some things
Xerox trades at an average of 1.2 million shares a day x 21 trading days in Sept = 25.2 Million shares.
25k employees x 5 shares = 125k shares. This action would have no impact on share price. Xerox doesn't make money on outstanding shares. Xerox could be trading at Amazon levels and you would not be safe.
Xerox buys back shares to lessen the total pool of outstanding shares, so every share left is worth more. This action is not to benefit Xerox, but the share owners, who vote in the board and vote on executive compensation. Xerox looses money in this endeavor, with no benefit to itself.
Xerox is thinking how many shares can I buy back if I lay off X many people. The problem is if they cut too many people, the cashflow stops because service turns to sh!t and customers leave. This means no more money to buy back shares.
Considering Xerox is planning on spending more on share buybacks than it plans to make in profit shows that this is already the case. Revenue is expected to be down 50% and their top priority is share buybacks and dividends.
This post is so dumb I have no response.
Are you delusional??? I wouldn't spend 5 cents on their stock
I want to be layed off