Phils weblog

How much profit is too little?

Forget about Twitter. They're not making any profits and therefore reducing headcount might enable them to get some, maybe. I don't care obviously, as I'm full mastodon now. What I'm talking about is Microsoft, Google, Apple, or any company that is actually making more profit than a single sensible person could spend in their life times.

Why are these companies making people redundant or sacking them? Apart from the cover they're getting from Twitter and the economic headwinds. Why is it more important to increase their profits or EBIDTA ratio? Why more profit over the lives of the people they are potentially destroying?

Can we make a society, or system, that rewards making just enough profits? Just enough to pay for salaries and do good in the world. Making great products, that people love, and paying their employees at least a living wage to make them.

Could there be an equivalent to the stock market for companies who care? We could add to it the ratio of the lowest paid employee to the highest paid. Can this be calculated from the current financial reporting that companies have to do?

I think I'd like to try, starting with maybe the FTSE 500, then I can go look at America after I've proved the methodology.

[PS A year later, I'm now being made redundant — for the same EBITDA reasons. Also, I made zero steps towards my better stock market.]

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