Like, Company A posts 5 Billion in profits. But if they post 4.9 billion in profits next year it’s a serious failing on the company’s part, so they layoff 20% of their employees to ensure profits. Am I reading this wrong?
In: Economics
Companies that aren’t at least growing with inflation and population growth are doing worse than ‘average’.
Many businesses want to also grow with average productivity increases, and some companies (e.g. Tech or really growing companies) expect to grow even faster than that.
If you are doing badly you need to rapidly set things right or you will be in a position where you can’t save yourself.
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