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No real problem that happened this week. Business had precipitous revenue decrease. Could get better, could not. Had to cut employees. Do you cut 35% or 40% of
by texasbigdata 7y ago
No real problem that happened this week. Business had precipitous revenue decrease. Could get better, could not. Had to cut employees. Do you cut 35% or 40% of corporate?
Do you cut more just to hedge the economy won't recover? I appreciate the philosophy 101 lesson but your premise is completely not true. If you cut the Sr. Manager of XYZ and hire another one 120 days later...you probably didn't need to cut the one you did.
- philjr 7y agoYou err on the side of cutting "too much", because a. as the original author suggested, you want to cut once and b. because the downside of cutting "too much" is better than the downside of cutting too little. For everyone.
- nordsieck 7y ago> If you cut the Sr. Manager of XYZ and hire another one 120 days later...you probably didn't need to cut the one you did. If you make cuts based on a pessimistic projection and the future turns out to be much rosier than you thought, were you wrong? I don't think so. You just had limited knowledge. This is compounded by an unusually wide spread between pessimistic and optimistic projections during times like this. Will someone find a cure? Will enough ventilators be made? How soon will people be allowed to go back to work? How effective will self-isolation be? Today, no one knows the answer to these questions. We'll know much, much more in 4 months. It's just not reasonable to expect that decisions made today will seem perfect 120 days in the future.