The protagonist of the movie "The Big Short" (The Big Short) prototype Berry (Michael Burry).

(Bloomberg)

[Financial Channel/Comprehensive Report] Cloud software giant Salesforce (US stock code CRM) announced on Wednesday (4th) that it would lay off 10% of its workforce. As soon as the news came out, the company's stock price rose by 5% on the 4th.

Michael Burry, the protagonist of the movie "The Big Short" (The Big Short), expressed his opinion that Salesforce's stock should fall, saying that "layoffs are not a reason to hold it (Salesforce)."

According to comprehensive media reports, in order to save operating costs, Salesforce announced on Wednesday that it will lay off 10% of its staff and close some offices. It is estimated that the above-mentioned austerity actions will generate costs of approximately US$1.4 billion to US$2.1 billion (approximately NT$42.9 billion to 64.3 billion) , of which US$800 million to US$1 billion (approximately NT$24.5 billion to NT$30.6 billion) will be recognized in the fourth quarter of fiscal year 2023.

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As soon as the news of layoffs came out, the company's share price of Salesforce rose by 5% on the 4th, reaching a peak of US$141.85 at one point, and finally closed at US$139.59, an increase of 3.57%.

Seeing the above-mentioned stock price trend of Salesforce, Berry, the protagonist prototype of the movie "The Big Short", was puzzled.

Berry tweeted today (5th) that Salesforcee's stock price should drop by 25% due to these layoffs, and said layoffs are not a reason to own it.

But foreign media pointed out that although layoffs are negative news that damages employment and livelihoods, Wall Street generally believes that such developments are good for the balance sheet, which is why Salesforce's stock price rose this time.

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