Christopher SchmidtApr 25, 2023

Google today announced that the board has approved $70B of stock buybacks.

Stock buybacks are not considered a universal good: "Some economists and investors argue that using excess cash to buy up stocks in the open market is the opposite of what companies should be doing, which is reinvesting to facilitate growth (as well as job creation and capacity)."

At Google that might mean things like (for example) "Choosing not to fire 12,000 employees."

Show threadwakingrufusApr 25, 2023
@crschmidt
Stock buybacks are one thing... But paired with layoffs? Pure evil
Show threadChristopher Schmidt

@wakingrufus Yeah, if you really can't come up with anything else to do with your money, buybacks are not an unreasonable thing to think about.

But "Keep paying the people we hired earlier this month" seems like it should have been in scope of something Google could have considered doing with its money.

Apr 25, 2023 at 9:59pmWeb
Show threadAlex ZaniApr 25, 2023
@crschmidt @wakingrufus I'm so glad that they lied to us about why they were saving their cash reserves. That's always just fantastic.
Show threadChristopher SchmidtApr 25, 2023

@AlexandreZani @wakingrufus "We have a giant bankroll to ensure that we can weather any short-term financial difficulties!"

*labor gains a modicum of leverage*

"_almost_ any short-term financial difficulties!"

Show threadPeter ButlerApr 25, 2023
@crschmidt @wakingrufus It is quite an inflection point when a business stops paying its employees and starts spending on boosting its stock price. It doesn’t bode well to me, but I am not an "investor"
Show thread➡ [email protected]Apr 26, 2023
@crschmidt @wakingrufus bonuses for workers should be your only option if you can't think of any reasonable reinvestment use.
Show threadPär BjörklundApr 26, 2023
@crschmidt @wakingrufus give maintenance the same benefits as software developers. Don't rely on contractors to avoid benefits. Lower prices, donate a truckload to charities. There are a lot of things one could do with 70B.