I was also studying many MBA books about decision making in corporate environments. Many cool things about data driven decision making. Costs and alternative costs, etc., many cool things, some even with scientific background. RTO is also analyzed in similar manner. The truth is that RTO is great way to ditch people with longer commute and/or kids easily and for free. And unions (as they’re in Germany) are happy.

But let’s get back to reality, the business decisions are made in the style “I like this” and “I don’t like this”. Only most obvious decisions are somehow backed up. And RTO is known to work well to ditch 2-3% of workforce in few months for free. Parents go first, high performers go afterwards. Headcount reduced, job well done!

The way with severance packages can go for years with many rounds when the packages are too small. Severance packages also involve social plan negotiations with unions… Somebody will go to court for sure and sue the company… So obviously let’s do RTO, it’s cheap and quick. And improves collaboration of course. First round with mandatory 3 days in the office and second one with 5 days in cheapest possible open office with chaos, distractions and noise.

I wonder if it’s possible for to sensibly short stock based on RTO announcements?

Generally people don’t push for redundancies is companies growing organically.

If this is a signal I wonder what the lead time is before it starts to bite?