Layoffs — Trading Ideas on TradingView

CSCO Layoffs Positive for the Stock NASDAQ:CSCO gapped up on its earnings report even though the company has failed to reinvent and failed to change to HyperAutomation in its IT departments quickly enough. News of layoffs is considered a positive action on the part of the officers of the corporation who are responsible first and foremost to INVESTORS and cutting costs so that the company can slowly regain revenues and earnings for dividends for INVESTORS. Delaying layoffs, which may be kind and thoughtful for employees, is a negative for INVESTORS, namely the giant Buy-Side Institutions, because it extends and worsens the financial condition of the company. As more and more companies buy robots/robotics and AI technology, these will reduce payroll expenses and help to control internal business inflation, which is caused mostly by rising payroll expenses with declining productivity from the workforce of the company. This is always misunderstood by retail groups who believe layoffs are a bad thing for the "economy." The world of commerce and the financial markets is not a fair or kind place.

Cara Therapeutics Shifts Focus, Initiates Layoffs.Cara Therapeutics (NASDAQ: NASDAQ:CARA ) is undergoing a significant transformation as it announces strategic shifts in its operations, including substantial layoffs and a departure at the executive level. The biopharmaceutical company is redirecting its focus towards its late-stage notalgia paresthetica program, necessitating a withdrawal from advanced chronic kidney disease (CKD) initiatives. This move aims to extend the company's financial runway until 2026, leveraging the $101 million on hand at the end of 2023. The restructuring decision, however, comes at the cost of up to 50% of the company's workforce. Layoffs and Strategic Reprioritization: Cara Therapeutics ( NASDAQ:CARA ) President and CEO, Christopher Posner, expressed the rationale behind the strategic pivot, emphasizing the discontinuation of the advanced CKD program to allocate more resources to the oral difelikefalin Phase 2/3 clinical program. This shift is expected to optimize the company's position in the competitive pharmaceutical landscape and enhance its ability to bring innovative solutions to patients suffering from notalgia paresthetica. Posner acknowledged the contributions of patients, investigators, and employees involved in the advanced CKD clinical program, highlighting the company's commitment to transforming the lives of CKD patients experiencing pruritus. The decision reflects a calculated move to reallocate resources where they can have the most significant impact, aligning with Cara Therapeutics' commitment to delivering groundbreaking therapies. Financial Implications and Extended Cash Runway: By refocusing its efforts, Cara Therapeutics ( NASDAQ:CARA ) aims to capitalize on the promising prospects of its oral difelikefalin program, positioning itself for success in the evolving pharmaceutical landscape. The company anticipates that this strategic realignment will extend its cash runway into 2026, providing the financial stability required for the successful development and commercialization of its late-stage programs. Study Results and Timeline: Investors and stakeholders can anticipate the first part of Cara Therapeutics' study results in the third quarter of 2024, with final results expected by the end of 2025. The secondary study results are slated for release in 2026. These milestones represent crucial steps in the company's journey to bring new therapeutic options to patients, and the market will undoubtedly be watching closely. Leadership Departure: In conjunction with these strategic changes, Cara Therapeutics ( NASDAQ:CARA ) also announced the departure of Frédérique Menzaghi, the Chief Scientific Officer and Senior Vice President of Research and Development. Menzaghi's exit, scheduled for February 2, marks a significant transition in the company's leadership. Investors and industry observers will be keen to understand the implications of this departure and how Cara Therapeutics ( NASDAQ:CARA ) plans to navigate this change in its executive team. Conclusion: Cara Therapeutics' recent announcements underscore the dynamic nature of the biopharmaceutical industry. The strategic realignment, layoffs, and leadership changes indicate a company poised to adapt to emerging opportunities and challenges. As the pharmaceutical landscape evolves, Cara Therapeutics' bold moves reflect a commitment to innovation and a focused approach to addressing unmet medical needs.

SolarEdge Faces Turbulent Times Amidst Layoffs and Revenue Fall SolarEdge ( NASDAQ:SEDG ), once a stalwart in the renewable energy sector, finds itself at a crossroads as it announces a massive layoff plan, cutting 900 jobs – a move that underscores the harsh realities of a sharp decline in revenue. The company, which had witnessed an 80% drop in valuation, is grappling with unforeseen challenges, including postponed orders, cancellations, and a challenging macro environment for renewable energy companies. The Downward Spiral: SolarEdge's descent from grace has been rapid, marked by a series of setbacks that have eroded its market value. The company, a former member of the S&P 500 until just two months ago, now faces a four-and-a-half-year low in its stock prices since September 2019. The current market valuation of $3.9 billion is a far cry from its peak at $20 billion in mid-2022, when it stood as the largest Israeli company on Wall Street. Revenue Fall and Analyst Surprises: The heart of SolarEdge's predicament lies in its financial downturn. The company revealed that its revenues for the fourth quarter of 2023 are expected to be a staggering 55% lower than the already diminished figures from the third quarter. Analysts, caught off guard by the severity of the decline, had predicted a drop in revenue but not to such an extent. The third-quarter revenues of $725 million were themselves 27% lower than the second-quarter revenues of $991 million. Factors Behind the Freefall: SolarEdge attributes the sharp decline in revenue to a myriad of factors, including the postponement of orders and cancellations from customers and distributors in Europe. The company is also contending with increased inventory, a challenging macro environment for renewable energy companies, and the impact of changes in tax incentives in the U.S. and Europe. The rise in interest rates, making financing projects more expensive, has further strained the industry's sensitivity to cost increases in the renewable energy sector. BlackRock's Contrarian Move: Despite SolarEdge's woes, investment giant BlackRock has taken a contrarian stance, increasing its stake in the company over recent months. According to a report filed with the U.S. Securities & Exchange Commission (SEC), BlackRock held a 15.8% stake in SolarEdge at the end of 2023, up from 9% in its previous report in April 2023. This move raises questions about BlackRock's confidence in SolarEdge's ability to weather the storm and bounce back from its current challenges. Conclusion: As SolarEdge ( NASDAQ:SEDG ) navigates through these turbulent times, the layoffs and revenue plunge serve as a stark reminder of the volatility inherent in the renewable energy sector. The company's ability to adapt to changing market conditions, address internal challenges, and regain investor confidence will determine its future trajectory. In a landscape where renewable energy companies face multifaceted challenges, SolarEdge's journey unfolds as a cautionary tale and an opportunity for introspection within the industry.

WFC - SHORT TERM DECLINE Wells Fargo is planning to lay off over 500 employees in Richland County, South Carolina, by June 30, 2024. The layoffs have already started, with the highest number of job cuts in the state listed at their location on 101 Greystone Blvd. These layoffs are part of a consolidation process affecting behind-the-scenes employees, with bank tellers and customer service representatives unaffected. This move reflects a broader trend in the banking industry, where institutions are downsizing to adapt to changing market dynamics and technology advancements. Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.

META Layoffs: Good or Bad?Most people assume layoffs are going to drive the price of the stock down. NOPE, general consensus on the professional side is the sooner layoffs begin, the faster the company can recover from declining revenues and earnings, and reinvent. META is a stock in a sub-industry that has few members, hence it is used in many ETFs and mutual funds due to that rare sub-industry group. It has some stiff resistance shown best on the weekly chart above current price. But with support from institutional investors, the stronger support level in the bottom formation is likely to hold.

Things are looking very ugly, day by day Rate hike will continue as Jerome has no way out now. 50 basis points is my projection. Experts cannot see any concrete signs that economy is under control, in which they are right. Wall St banker's narrative are switching from soft landing, to crash landing. US money supply has shrinked while yield curve remain heavily inverted. Uh ohh. Congress voted to end emergency allotment. This means millions of Americans will lose $3 Billion a month food stamp benefits. Debt levels across all segments & categories are at record high. Layoffs are still on-going and is not stopping. Stay liquid and conserve ammunition. The bottom is not in yet. By Sifu Steve @ XeroAcademy

Recession on the Horizon - FOMC and Layoffs Yesterday, the FOMC confirmed the backing of higher interest rates for longer. The market reacted negatively signaling negative sentiment on rate expectations for the following quarters. Federal Reserve official, Neel Kashkari, who often has the most dovish views on market anticipation stated that inflation may have peaked but sees interest rates rising higher for the next few meetings. He sees the FED raising rates by a whole percentage point from the current level of 4.25%-4.5% to 5.4% (MarketWatch, Jan. 5). The inflation fight is not over yet, and it remains sticky despite all the economic weakening observed. In a previous thesis where I challenged the US economy about a year ago, I warn of massive layoffs in 2023 despite most analysts and the Fed saying otherwise. Meta and Tesla have already laid off thousands of employees just months ago. Today, large layoffs in tech are happening with Salesforce: “layoff about 10% of its employees, the company also says it will close some offices as part of its recruiting plan, but it is still unclear if any of the bay area offices will be impacted, undertaking major cost cuts in a challenging economy.” (CNBC, Jan. 5). Amazon Chief Executive Andy informed his employees that the number of layoffs in the company has now been increased to more than 18000 roles (ArabianBusiness, Jan. 5). Other firms are cost cutting, most cutting employee benefits. It is just a matter of when or not we are going to see higher unemployment rates in 2023. The most obvious fundamental reason for these layoffs and cost cuts is the fact that all these companies responded to the “bubble” fueled by stimulus and extensive quantitative easing. As a response, the Fed is raising interest higher, and tightening the monetary policy and we see the equity evaluation of these companies dropping significantly. Eventually, that demand is gone, and these companies are left with thousands of employees hired in response to a "fake" demand, over-hired. As equity evaluation is going down, they have to improve the margins by laying off employees and reducing expenses since revenue is going down. I see another reason for large layoffs, perhaps, a more IMPORTANT and IMMEDIATE aspect. Salesforce admitted business activities going down, demand slowing, and growth staggering, however, their stock went higher because they laid off employees, reducing their expenses. On paper, it shows higher margins, and thus, the stock reacted positively. What can become a norm during this economic environment is that we see more companies, especially in the tech industry which saw major lows, employing this technic by raising their stock prices with restructuring and engaging in mass layoffs. My plan of limiting my exposure to risks has not changed. I am holding a majority in cash and short-term government bonds. Looking to increase exposure to my trading in gold when the US 10-Year Real Rates falls from the inverse correlation between the two. Reminder: Higher real yields = expensive to hold gold when compared to other yielding investments such as fixed income, thus the inverse correlation on the charts. This is for personal recording but feel free to comment and argue.