Q: Hi 5i
Lspd announced layoffs this morning. Says this wont affect or impact the strategic review. Share price down 5%.... Is this action a negative for the company....if so why...
Would 5i continue to hold after this announcement...
thx
Lspd announced layoffs this morning. Says this wont affect or impact the strategic review. Share price down 5%.... Is this action a negative for the company....if so why...
Would 5i continue to hold after this announcement...
thx
5i Research Answer:
We would consider it a bit negative. 200 employees laid off is not huge when compared with its 3,000 base, but it certainly does not scream 'growth'. We have no reason to not believe the company when it says the review will not be impacted. Any buyers probably would look to cost optimization and layoffs as well, so it is more optics and timing. We would still be willing to hold pending the outcome of the review.