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A very small profit in decline, if they do nothing about it they are likely to go into the red, which will end up causing even more lay-offs. Even historically
by pathy 11y ago
A very small profit in decline, if they do nothing about it they are likely to go into the red, which will end up causing even more lay-offs.
Even historically business have been motivated by profit and increasing said profit. This is nothing new and certainly has nothing to do with MBAs. No private (i.e. not state run) business has ANY obligation to employ more people than they need/want just for the sake of it.
- iofj 11y agoThe problem with such "MBAs" is that always the answer is to eat the seed corn, making the problem worse. If Lenovo is to grow out of this, it will have to do it with the manufacturing and design/IT departments. Yet a voice within me seems to be very certain that these departments are going to find themselves cut down far more than the sales and general management departments. At one company, when this happened, they actually increased sales commissions while cutting engineering jobs. At that point, you know it's time to get out. Out of the company's stock, primarily. IBM is the prime example of this attitude.