Part 2. The Great Layoff Scam: How CEOs and Executives Profit from Cutting Jobs
The Legalized Quiet Heist Happening During Layoffs
Introduction
In Part 1 (Part 1. The Great Layoff Scam: A Billion-Dollar Deception - Layoffs as Stock Market Manipulation), we exposed how corporate layoffs manipulate stock prices for the gain of top 1% disguised as “creation of shareholder value”. But that’s just one part of the scam.
In corporate America, layoffs are not about efficiency—they’re about executive enrichment. Behind closed doors, executives use insider knowledge to time their stock sales perfectly, making billions while their workers lose everything. This isn’t just corporate greed—it’s a legalized crime, happening in plain sight at the highest levels of power.
But this is bigger than just insider trading. The rise of massive stock buybacks—especially in the tech sector—has created a system where layoffs aren’t just a cost-cutting measure, but a financial strategy to enrich top executives.
How American Insider Trading Works in Layoff Cycles
(Image source: Grok)
Layoffs trigger stock price fluctuations that executives exploit with near-perfect precision. The pattern is consistent:
Layoff Announcement: Companies cite "cost-cutting" or "streamlining" as justification.
Market Reaction: Investors see layoffs as a positive move to reduce costs, leading to short-term stock price surges.
Executive Stock Sales: Using insider knowledge, executives sell at peak stock valuations, extracting millions.
Stock Decline: The short-term boost fades as real financials set in, but executives have already profited.
According to SEC filings (2021–2024), insider stock sales surged by 90% following layoff announcements, revealing a systematic abuse of privileged information.
Examples of High-Profile Executives Profiting From Insider Trading Across Industries
Executives across multiple industries have leveraged insider knowledge to time their stock sales, ensuring maximum personal profit while workers bear the consequences of mass layoffs. Their actions expose a deeply flawed system that prioritizes executive wealth over employee stability.
1. Tech Executives Timing Layoffs & Stock Sales
Tech CEOs have mastered the art of timing layoffs to artificially boost stock prices, strategically selling their shares at peak valuations to maximize personal profits while thousands of employees lose their jobs.
(Sources: Data for CEO compensation data were obtained from reputable platforms such as Salary.com, Observer, Reuters, Bloomberg, WSJ, and various other trusted financial and industry-specific outlets, providing detailed insights into executive pay structures and equity alignment)
Amazon
Following the announcement of 27,000 job cuts, Amazon executives sold $3.6 billion worth of stock, perfectly timing their sales to benefit from the market's short-term reaction.
This cyclical pattern—layoffs driving stock surges, followed by insider sales—erodes market integrity, leaving workers and small investors as casualties in a rigged system.
Jeff Bezos
In 2021, Amazon announced sweeping layoffs, claiming the need to "streamline operations" and prepare for economic uncertainty.
Just days later, Jeff Bezos sold $6.6 billion worth of Amazon stock, perfectly timing his sale to capitalize on the stock's post-layoff surge.
The company’s share price jumped following the layoff announcement, reinforcing how executive decisions on workforce reductions often lead to short-term stock gains that benefit insiders.
To put this into perspective, the $6.6 billion Bezos gained from his stock sale could have covered the annual salaries of all 27,000 laid-off Amazon employees for 2.4 years, assuming an average salary of $100,000 per year. Instead, that money was funneled into personal wealth, exemplifying the disconnect between executive priorities and worker stability.
Satya Nadella (Microsoft)
In 2022, Satya Nadella followed the same predictable playbook. Microsoft laid off 14,000 domestic workers under the guise of cost-cutting. In a seemingly unrelated move, Nadella offloaded 279,000 shares, earning himself $65 million in profit—right in the midst of the layoffs.
Unlike smaller layoffs that might go unnoticed, Microsoft’s mass job cuts drove short-term stock appreciation, a trend that Nadella used to his advantage. His actions didn’t save Microsoft money or improve operational efficiency; rather, they boosted investor confidence, pushing stock prices higher and allowing him to cash out at the perfect moment.
These layoffs weren’t just a restructuring move; they were part of a well-calculated strategy where executives weaponized job cuts for financial gain, while employees bore the burden of uncertainty, severance, and career instability.
While 14,000 workers were left jobless and paid the price for his payday, Microsoft simly displaced them with over 30,000 H-1B workers.
Mark Zuckerberg (Meta)
2021: Meta laid off 21,000 employees, blaming “over-hiring” and “over-optimistic growth projections.” At the same time, Mark Zuckerberg strategically sold 7.1 million shares, raking in $2.2 billion in profits.
The pattern: Meta’s layoffs fueled stock gains, which Zuckerberg capitalized on.
Simultaneously Meta sponsored 24,000 H-1B visas for foreign workers, and hired unknown number of contractors via third party consulting companies.
Layoffs were never about “right-sizing” Meta—they were a financial strategy for Zuckerberg to maximize his personal fortune. So while thousands of workers faced unemployment and uncertainty, Zuckerberg manipulated public perception, controlled the media narrative, and walked away with billions.
In 2024, Meta announced a $50 billion stock buyback—right after another round of layoffs.
Tim Cook (Apple)
In 2022, Tim Cook received $82 million in stock awards, a payout directly tied to Apple’s share price. Unlike many of his counterparts, Cook oversaw relatively minimal layoffs, with Apple letting go of only about 700 employees during the pandemic—far fewer than other tech giants, and sold 0 shares.
However, this does not mean Apple avoided questionable labor practices. While citing supply chain disruptions and global economic uncertainty, Apple strategically shifted some of its manufacturing back to the U.S., all while aggressively sponsoring foreign worker visas. This move allowed the company to minimize labor costs while maintaining public optics of "reshoring jobs," a contradiction that underscores the broader corporate profit strategy.
Elon Musk’s Compensation: A Billionaire’s Windfall
No Salary, All Stock: Musk has not drawn a traditional salary from Tesla since 2019. Instead, his compensation is entirely tied to stock options, with payouts contingent on meeting performance and market capitalization milestones.
This compensation structure allowed Elon Musk request $50 billion pay the same year he slashed off tens of thousands of employees and implemented stock buybacks soaring the stock price.
Due to the complexity of Tesla’s “financial engineering” I will discuss it in the separate article.
2. Finance Industry
While tech companies have perfected the art of layoff-driven insider trading, this is not just a tech problem. Insider trading—where executives use privileged information to enrich themselves—exists in nearly every major industry.
In recent years, the finance industry has witnessed several notable instances of insider trading and strategic stock buybacks, questioning the market integrity.
James Herbert II (First Republic Bank)
In the months leading up to First Republic Bank's collapse in 2024, founder and former executive chair James Herbert II sold over $6.8 million worth of shares.
These sales occurred before the bank's failure, which rendered its shares worthless, raising concerns about potential insider trading.
Credit Suisse & UBS Executives (2023)
Before Credit Suisse collapsed, top executives at the bank sold stock months before its acquisition by UBS, pocketing millions while retail investors were left with worthless shares.
Silicon Valley Bank (2023)
In the weeks leading up to the SVB collapse, CEO Greg Becker sold $3.6 million in stock, knowing the bank was in trouble.
Federal Reserve Officials (2020-2021)
Several Federal Reserve officials, including Robert Kaplan (Dallas Fed) and Eric Rosengren (Boston Fed), were caught trading stocks during pandemic relief decisions, raising serious ethical concerns.
Finance executives don’t just trade stocks—they trade on market-shifting economic policies, banking collapses, and government bailouts.
3. Healthcare: Profiting Off Drug Approvals & Crises
The healthcare industry—especially pharmaceutical companies and hospital networks—is another hotbed for insider trading. Executives frequently trade stocks based on upcoming FDA drug approvals, vaccine rollouts, and regulatory changes.
Carlos Sacanell (Oak Street Health)
In 2024, Carlos Sacanell was charged with insider trading after using non-public information about CVS Health's impending acquisition of Oak Street Health.
Sacanell allegedly profited $617,000 by trading Oak Street stock and options based on tips from his domestic partner, a senior executive at Oak Street Health.
Case Study: The COVID-19 Vaccine Trading Frenzy
Pfizer, Moderna, and Johnson & Johnson executives collectively sold over $500 million in stock between 2020-2021 before vaccine announcements.
Pfizer CEO Albert Bourla personally sold $5.6 million in stock on the same day Pfizer announced its vaccine was 90% effective.
Moderna executives dumped $150 million in stock in 2021, right before booster shot approval delays were announced.
Other Healthcare Insider Trading Scandals
Senator Richard Burr (2020): Used privileged COVID briefings to sell stock before the market crashed, avoiding losses while millions of Americans suffered.
Biogen Executives (2021): Before their controversial Alzheimer’s drug Aduhelm was approved by the FDA, Biogen insiders dumped stock, making millions before the public found out about the drug’s weak efficacy.
Healthcare executives aren't just trading stocks—they’re trading lives.
4. Manufacturing & Industrial Sector: Manipulating Supply Chains
The manufacturing sector, including automotive, energy, and aerospace industries, is notorious for executives profiting from supply chain issues, defense contracts, and government subsidies.
Case Study: The Boeing & 737 MAX Scandal
Before the Boeing 737 MAX crashes in 2018 & 2019, top Boeing executives sold off millions in stock, knowing the aircraft had safety issues.
CEO Dennis Muilenburg dumped $30 million in stock before the crashes, while families of crash victims were left devastated.
The stock tanked by 50% after the FAA grounded the planes, but Boeing insiders had already escaped losses.
Other Manufacturing Insider Trading Cases
General Electric (GE) Executives (2017-2018):
GE insiders sold $120 million in stock before disclosing that its power division was underperforming—causing a stock collapse.
Ford & GM Executives (2023):
Ahead of the 2023 United Auto Workers (UAW) strike, Ford and GM executives sold off shares, anticipating production halts and stock declines.
Manufacturing executives game insider information on supply chain disruptions, product failures, and even labor strikes.
5. Food & Agriculture: Playing with Prices and Commodities
Even food companies and agriculture giants are guilty of insider trading, price-fixing, and market manipulation.
Case Study: The Tyson Foods Price Fixing Scandal (2020)
Tyson Foods, Pilgrim’s Pride, and Sanderson Farms executives conspired to manipulate poultry prices, leading to federal charges.
Before the price-fixing scandal was made public, Tyson’s CFO sold millions in stock, avoiding losses.
Other Food Industry Insider Trading Cases
Beyond Meat (2022): The company’s stock collapsed by over 80%, but insiders sold large amounts of shares before revealing declining sales and fake demand.
Archer Daniels Midland (ADM) (2023):
Top executives sold millions in stock before revealing commodity supply shortages, causing a market reaction.
Food industry insiders profit by hoarding stock before price hikes, supply chain disruptions, or fraud scandals become public.
6. Energy Industry
Jeffrey Campbell (Marathon Petroleum)
In 2024, Marathon Petroleum's Director, Jeffrey Campbell, purchased $900,000 worth of shares following a 2% decline in the company's stock.
While this instance involves stock purchases, it highlights how insiders in the energy sector actively engage in trading activities that can influence market perceptions.
The Worker Cost of Executive Greed
While CEOs cash out, workers face devastation:
Job Losses: Mass layoffs leave employees scrambling for financial stability.
Increased Workload: Remaining workers are forced to do the work of 2-3 people, leading to burnout.
Wage Stagnation: While executive pay skyrockets, worker wages remain stagnant.
"The $6.6 billion Bezos made from stock sales could have covered every laid-off Amazon worker’s salary for over two years. Instead, it went straight to his bank account."
What Needs to Change
In order to stop rewarding the financial corruption we need to ban or restrict stock buybacks like it’s done in other countries, so the companies are foced to innovate to profit, instead of manipulating the stock market and playing with workers as pawns in their stock market casino.
Additionally, layoffs should be restricted and require government approval and only allowed after a company actually proves its financial justification. The volume of layoffs should also be justified based on the real company’s financial performance aka financial troubles, not soaring profits as we’re seeing in these cases.
Last but not least, executives must be banned from stock sales following 6 months after the layoffs.
From Inaction to Action: The Need for Collective Courage
Even as over 70 organizations have called for systemic change, Congress has responded with inaction and empty promises. Stock buybacks are not capitalism, this is a legalized crime and financial corruption, disguised as free enterprise. Corporations continue to exploit layoffs as financial tools and union-busting weapons, unchecked by any meaningful regulation or accountability. It’s not enough to be angry—breaking this cycle demands collective courage and bold leadership.
As economist Stephanie Kelton powerfully put it:
“Money isn’t scarce. That myth was debunked when governments unleashed $16 trillion in response to the pandemic. The real scarcity is courage and imagination.”
We’re at a crossroads. The question isn’t whether reform is possible—it’s whether we’re ready to fight for it. Are we willing to demand a system that values workers over profit margins? That protects communities instead of dismantling them for shareholder gain? The stakes couldn’t be higher: the future of workers, the stability of communities, and the integrity of the economy depend on our collective action.
The question is: how much longer will we allow it to continue?
The Illusion of Free Markets: Closing the Insider Trading Loopholes
Insider trading isn’t just a loophole—it’s the foundation of a rigged system where executives manipulate stock prices, cash out at peak valuations, and leave workers and investors to deal with the fallout. These corporate maneuvers are not about efficiency or shareholder value—they’re about a small elite extracting wealth while evading accountability.
As long as stock buybacks remain unchecked, layoffs are used as financial tools, and executives can trade on privileged information, the economy will continue to be a casino for the rich and a trap for everyone else. Until we enforce real restrictions on insider trading, executive stock sales, and layoff-driven market manipulation, corporations will keep rewriting the rules to serve themselves—while the public foots the bill.
This isn’t capitalism. It’s legalized theft disguised as free enterprise. The question is: how much longer will we allow it to continue?
Looking for the Part 1?
Part 1. The Great Layoff Scam: A Billion-Dollar Deception - Layoffs as Stock Market Manipulation)
Sources
Yahoo Finance - Stock Buybacks, Executive Compensation & Layoffs
Pfizer CEO Albert Bourla Selling Stock on COVID Vaccine News
Boeing Executives Selling Stock Before 737 MAX Crash Reports
General Electric (GE) Executives Selling Before Financial Crisis
Disclaimers & Footnotes
This article is based on publicly available data, financial disclosures, and reputable sources. While efforts have been made to ensure accuracy, some details may change over time.
The content reflects the author’s analysis and opinions for informational and educational purposes only. It does not constitute financial, legal, or professional advice and does not allege wrongdoing without legal findings.
Charts and tables are illustrative and based on observed valuation trends. For verified financial data, refer to company filings, financial reports, or sources like Yahoo Finance, MarketWatch, and Investopedia.
Terms such as "staged," "fake," "layoffs," "stock buybacks," "crime" and similar are used for narrative purposes only and do not imply legal accusations. References to companies, organizations, or individuals are based on publicly available information and do not indicate endorsement, affiliation, or culpability.
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