WORKDAY’S REVENUE BOOM: A SYMPTOM OF A BROKEN SYSTEM
Workday’s explosive second-quarter revenue growth, accompanied by a $1-billion stock buyback plan, is a stark reminder of the toxic relationship between corporate America and its shareholders. As the company’s profits soar, the labor market continues to stagnate, with hiring rates plummeting. But don’t worry, the CEOs will still get their bonuses.
THE FEDERAL RESERVE’S SECRET INFLATION THERAPY
Analysts claim that corporate spending on human resources and payroll is on the rise, especially in small-to-medium business segments. But what they’re really saying is that companies are desperate to find ways to keep their employees from fleeing the sinking ship. And what’s driving this desperation? The Federal Reserve’s reckless monetary policy, which has created an inflationary environment that’s making it impossible for workers to afford the basics.
WORKDAY’S MARGIN EXPANSION: A CODE FOR "WE’RE RAISING PRICES ON THE BACKS OF WORKERS"
Workday’s forecast for full-year adjusted operating margin expansion is just a euphemism for "we’re going to squeeze more profits out of our employees." With subscription revenue growth slowing, the company is resorting to its usual tricks: cutting costs, laying off workers, and passing the buck to the consumer. And what’s the justification for this? The "macroeconomic environment" is "consistent with last quarter." In other words, the company is using the same tired excuses to justify its greed.
THE SHARE BUYBACK: A SYMBOL OF CORPORATE GREED
Workday’s $1-billion share buyback plan is a slap in the face to the workers who toil behind the scenes to generate the company’s profits. It’s a clear indication that the company’s priorities are misplaced, and that its only concern is lining the pockets of its shareholders. And what’s the impact of this buyback on the company’s employees? Zilch. Zero. Nothing.
THE FUTURE OF WORK: A FUTURE OF EXPLOITATION
As Workday’s executives revise their medium-term plans to accelerate margin expansion, we can’t help but wonder what the future holds for workers. Will they continue to be exploited, forced to work longer hours for less pay, and subjected to the whims of their corporate overlords? The answer is a resounding yes, as long as we continue to tolerate this broken system.
