With these non-IPO companies doing layoffs is the correct way to read these announcements "we are letting people go to lower expenses because we are not profitable and are actually at risk of running out of money" or is it more "we are letting people go to lower expenses because our investors are asking that we look better on paper because they would like us to have a liquidity exit event (acquisition, private equity, IPO)"?
I suppose my larger question is if a private company is break-even/profitable would the investors/board ever ask management to make these cuts? If so, why?
I suppose my larger question is if a private company is break-even/profitable would the investors/board ever ask management to make these cuts? If so, why?