4 ms·

> That’s a big “if.” When under pressure, managers and consultants will always claim they are cutting unproductive people, but time after time it turns out that

• braythwayt 7y ago
  Anecdata from following business and public sector news since the 1980s. Consider all the companies that would lay people off, claiming a headcount reduction, and give them a one-time package. So there is an immediate hit, to be made up for in the long run by lower ongoing operating costs, right? Only nope, the eliminated functions were still necessary, so many of the laid-off employees come back as consultants, and charge more than their fully loaded costs as former employees. Companies doing that gained a certain amount of flexibility, it’s always easier to get rid of a consultant than an employee, but all-too-often the company would trumpet the reduction in headcount and savings in salaries, while saying nothing about the need to increase operating costs on consultants, &c. Again, I have no visibility into WeWork. Anything could be going on there. I simply don’t automatically grant that companies can perform big layoffs and magically only get rid of people who were producing less than they cost. And I don’t automatically grant that companies will perform the layoffs, and then actually realize the gains they promised.