3 ms·
Some people produce less value than they cost.
by xyzzy4747 3y ago
Some people produce less value than they cost.
- yellowapple 3y agoThis explanation assumes that Microsoft is accurate in its assessments of value.
- xyzzy4747 3y agoThey just have to be accurate enough on average with room for error. If they fire 90 unproductive workers and accidentally 10 productive ones, it could still be a net positive for the company, just on a financial level (morality aside).
- yellowapple 3y agoIt could be, but it's notoriously hard to predict. Those 10 productive workers could join (or form) a competitor and result in far more damage to revenue than was saved in labor costs across all 100 of the laid off workers, for example.
- xyzzy4747 3y agoEverything in business is very difficult to predict and it's the realm of gut feelings and vague probabilities. Executives just make the best decisions they can.
- yellowapple 3y agoI guess the problem is that "best" depends on perspective.
- xyzzy4747 3y agoEveryone has a different perspective, but at the end of the day, some companies do better or worse than others to the benefit or detriment of the shareholders.
- warrenm 3y agoEvery profitable company is accurate enough with its assessment of costs-vs-value-generated to "know" which employees are worth keeping, and which aren't
- supertrope 3y agoCompanies don’t wait until a layoff to cut these employees.