Buyout staff cuts fail to enhance efficiency

Recent academic research finds that making redundancies upon acquisition by private equity fails to help a company improve profits

Redundancies made during private equity-backed buyouts do not make companies either more productive or more profitable, even three years down the line, a new study has found.

Companies acquired by buyout firms, not including management buyouts, saw their headcount drop by 2-3% in the first year under ownership, according to a paper by Marc Goergen, a chair in finance at Cardiff University and Noel O'Sullivan and Geoffrey Wood, professors at the University of Sheffield.

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Europe Draws Up Retaliatory Tariffs for U.S. Goods in Case No Trade Deal Is ReachedExternal link

Europe Draws Up Retaliatory Tariffs for U.S. Goods in Case No Trade Deal Is Reached