![]() ![]() Concerns over the negative implications of LBOs for job security thus appear misplaced. Job insecurity is also no higher in perfect storm LBOs (PE‐backed management buy‐ins that are short‐holds with high‐debt). Contrary to what might be expected, it is also no higher in private equity (PE)‐backed LBOs, management buy‐ins or high‐debt LBOs and there is only partial and weak evidence of higher job insecurity in short‐hold LBOs. Job insecurity is no higher in either current or former LBOs than elsewhere. The analysis finds no consistent evidence of higher job insecurity in LBOs as measured by workforce reduction practices (redundancy rates, job security/no‐compulsory redundancies policies and redundancy consultation), dismissal rates, labour use practices (non‐permanent employment contracts and outsourcing) and employees’ job security perceptions. It draws on matched employer‐employee data from the British 2011 Workplace Employment Relations Study linked to data from the Centre for Management Buyout Research. This article assesses whether job insecurity is higher in leveraged buyouts (LBOs) than elsewhere. The article thus highlights the regulatory space for takeovers and considers feasible policy options, a set of interlinked regulatory changes, which will in particular require a more assertive state. We outline these trends and argue the case for a re‐connect, which will require empowering employees and managers to have more influence in takeover decisions and, in turn, disempowering shareholders and financial intermediaries. Specifically, we highlight a particular aspect of this disconnect whereby those who create value and have a long‐term stake in firms (employees and managers at the firm level) are disconnected from decisions regarding takeovers, as a consequence of wider economic and political trends (processes of financialisation/marketisation and associated state support for a neoliberal takeover regime). The DCT refers to the disconnect between the source of value creation (the labour process) and the wider political economy. This article draws upon the disconnected capitalism thesis (DCT) to analyse UK takeovers and their implications for workers.
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