Labor / Employees

Focused on growing cash flows at the companies they buy, private equity firms have in some cases taken a low road approach and sought to reduce wages, benefits, and staffing at firms they acquire.  Private equity and venture capital firms have also provided seed capital for many of the tech start-ups that classify their workers as independent contractors (e.g. Uber, Instacart). Due to their heavy debt loads, some private equity-owned employers (e.g. Hostess, Toys R Us) have been forced into bankruptcy.