Major companies looking to increase their stock value have resorted to firing employees. To date, there are 14 companies in the S&P 500 that have eliminated jobs each year for the past five to increase their stock value. Apparently, this has worked as these stocks have outperformed the market in short and long term gains.
Unfortunately, other companies are jumping on the bandwagon. Office Depot’s shared rose 16% May 6 after announcing their plans to close 400 stores. This is unfortunate, as the economy is supposedly rebounding. Either workers are “overqualified” and have to settle for less pay, or undervalued as a result of the healthcare initiative.