Will FAANG companies floating $100bil have less layoffs during recession?

Microsoft dowks
Aug 11 15 Comments

FAANG companies including MSFT keep over $100bil in their piggy banks. Why?

Will they tap into their piggy banks to avoid too many layoffs when the recession hit?

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TOP 15 Comments
  • Oath Atinlay2
    Clearly you don’t understand business.

    Hellllll no.
    Aug 11 3
    • Microsoft dowks
      OP
      I'm engineer.
      Aug 11
    • New / Consultant
      jennatalia

      New Consultant

      PRE
      Spotify
      jennataliamore
      That doesn't mean much. How much money do you earn the company? Compared with what you cost them?
      Aug 11
    • Amazon moved2ms
      I think they mean: yes OP doesn’t understand business.
      Aug 11
  • Dell / Eng
    .+

    Dell Eng

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    Dell EMC
    .+more
    About $4T is kept overseas and bringing it back will cost them something like 15% in tax (minus what they paid in tax before) so that money isn't coming back into the US economy any time soon. (And any money they bring back will more likely go to stock buy backs to prop up the share price)
    Aug 11 5
    • Facebook public2
      Uh that tax was removed last year
      Aug 11
    • Dell / Eng
      .+

      Dell Eng

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      Dell EMC
      .+more
      Not really. Please re-read the 'tax cuts and jobs act'. Seems like you missed some important details.
      Aug 11
    • Facebook public2
      Lol
      Aug 11
    • Dell / Eng
      .+

      Dell Eng

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      Dell EMC
      .+more
      01/2019, Microsoft did not, as of late, seem to repatriate or restate any of the cash. Their cash pile remained at the same level it did before the enactment of the tax cuts at around $134 billion and their repatriation income taxes were pushed into deferred income taxes as they continue to figure out what they owe the US. Their tax bill did increase by $5 billion this year (deferred figure), meaning they will too spread the estimated $13.6 billion they owe in taxes on their cash stockpile over the course of a few years. The company did not announce any major changes to its cash distribution and will likely keep most of it outside the US as they look to invest in different areas around the globe.

      https://seekingalpha.com/article/4235147-apples-microsofts-cash-year-later
      Aug 11
    • Facebook public2
      A global company choosing to invest globally!? Get the heck out of here. That must mean the law didn't change.
      Aug 11
  • Grab Ssatay
    MSFT had layoffs and didn’t give out awards during the last recession. But they were still making it over $1B per month. They used the recession as an excuse to cut costs not because they had to. I doubt any FAANG company will be in a position where they have to lay off to stay profitable.
    Aug 11 2
    • Amazon yuck2
      MSFT was way overdue for layoffs by 2009. The package was so good that people begged for it to be voluntary. Yet, they did it by business unit
      Aug 11
    • Amazon moved2ms
      As a new employee of MS, man I think it’s due for a layoff. There’s a LOT of bloat. Super smart people doing cool stuff don’t get me wrong, but they could be smarter and leaner and do exactly the same amount of work.
      Aug 11
  • Microsoft
    Scion

    Microsoft

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    Taco Bell, Campbell Soup, Jack in the Box
    Scion more
    Wait Netflix is on this list with cash in the bank? 🤔
    Aug 11 0
  • Microsoft
    hitmonchan

    Microsoft

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    Microsoft
    hitmonchanmore
    One year during the recession MSFT didn’t give out awards - I think it was the same year they did a bunch of layoffs.
    Aug 11 0

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