I don’t know much about private equity. So I appreciate the explanation. But that all just sounds like modern business to me. It’s a product of who we are and what we allow.
Then you need to look into how private equity works.
They buy mature companies, often with borrowed capital, and then place the debt on the purchase company. They essentially make companies take on a massive loan to buy themselves from themselves, except the private equity firm ends up the owner.
The company then goes into overdrive trying to pay off the debt, while the firm makes changes intended to make the company “more efficient”. All while paying themselves “consulting fees” and “bonuses” for stepping in and “helping” the company do better.
This usually means mass layoffs, dumping assets, paycuts, restructuring…
Best case scenario, they company was already failing, and now it fails faster.
Worst case… The company was doing perfectly fine, making a sustainable living for its employees. And then it gets purchased by a private equity firm.
Suddenly everything is on fire. Not a single penny can go unpiched, workplace comfort unsacrificed, or employee unoverworked. And that that is the new norm, is the good ending.
Melvin_Ferd@lemmy.world 1 week ago
Ledericas@lemm.ee 1 week ago
thats whats happening to red lobster, SEARS was done by scummy parasitic ceo of sears, toysrus,kmart?,etc
MentalEdge@sopuli.xyz 1 week ago
What do you mean “but”?
This doesn’t produce anything. It removes jobs instead of creating them. And by the end there is one less company in the system.
I wrote in response to you saying this is what they “should” be doing.
It most certainly isn’t.
Ledericas@lemm.ee 1 week ago
example of a parasitoid, unlike parasites, they kill the host.