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Post by blueneck on Jan 10, 2007 11:42:55 GMT -6
articles.moneycentral.msn.com/Investing/JubaksJournal/TheNextBigThreatToYourJob.aspxGood article by Jim Jubak. Don't always agree with 100% of what he says, but he always has good articles and information. In this article, the surge in mergers and acquisitions is the latest threat to job losses, as recently acquired companies must cut staff to show short term profits. I always find it a bit disconcerting that Wall Street likes layoffs and weak employment numbers.
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Post by unlawflcombatnt on Jan 11, 2007 3:41:59 GMT -6
That's an absolutely outstanding article. Everyone who can should read it. It shows the classic problem of short-term gains at the expense of long-term gains. And those short-term gains are being implemented by cutting labor costs. In this case, by laying off workers entirely. And this is being done with the clear understanding by these "merging" companies that the layoffs are not in the long-term interest of the company itself, but simply a gimmick to improve the bottom line on a short-term basis only, to deceive potential investors about the company's profit potential.
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Post by blueneck on Jan 11, 2007 20:26:36 GMT -6
Layoffs are completely short term, companies lose the collective knowledge and experience and continuity particularly when the more senior employees are let go. The ones left behind not only are doing the work of two people now, but are behind the 8 ball relearning all the past experience and doomed to repeat the past mistakes. This "running lean" mentality also inflates productivity numbers.
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