I think because most companies that are going through hard times, interpreted to mean - not made a profit, need to cut costs, or lost a lot of money and profits have dwindled considerably, overhead is high - are feeling the need to cut their staff in order to reduce costs. Other companies that are not going through any of these hard times feel the need to do the same. It's like a copy cat effect, ripple effect I know of, but the copycat effect, use the economic downturn as an excuse to cut staff to loosen up money for other things, maybe that trip to Alaska or a ski trip I promised all the partners.
This is just something I have been thinking about for a while. Every time you turn on the news, some company is cutting a significant percentage of their staff. Comon, they can't all have lost money in the past year. Every single company announces its intent to shut down some offices and cut its staff. And then, it turns round and declares a profit. Insane. Where do they expect these unemployed people to go...magically into the atmosphere where every other company has sworn off expansion?
No comments:
Post a Comment