Layoffs Not A Good Way To Cut Costs

from the um,-duh. dept

I've already posted a few similar articles, but people don't seem to be paying attention (can you believe that?). It turns out that over the long run layoffs tend to hurt a company more than help it. There are some exceptions, but generally only when the benefits are clear, such as consolidating two operations into one. What I find amusing is that no one seems to be able to contemplate both sides of the cost-benefit equation. Over the past few years dot coms were only looking at the benefit side and never the cost (since profits didn't matter, so it was okay to sell dollars for ninety cents). Now, no one looks at the benefit side - they only think about ways to cut costs. This is silly and dangerous. A good business knows how to balance the two.

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