4 ms·
A good friend of mine has a PhD in labor economics and is now a senior management consultant for a big firm and I've been told that in general just cutting peop
by tdb7893 2y ago
A good friend of mine has a PhD in labor economics and is now a senior management consultant for a big firm and I've been told that in general just cutting people is bad for businesses and most businesses will be worse off by just cutting people, especially without changing any of the underlying systems that got the company to the position it's in. Next time I'll have to ask him about the studies on it but there definitely isn't a consensus that general layoffs help businesses in the medium/long term. He was saying the times they seem to work best is in the context of a broader restructuring, (which in my experience is not common for companies).
- deviantbit 2y ago[flagged]
- Retric 2y agoNo, just cutting people across the company tends to be bad. Restructuring aka cutting programs and the people working on them has fewer downsides.
- deviantbit 2y ago[flagged]
- Retric 2y agoThere’s plenty of studies showing the downsides. It’s expensive, results in dramatic reductions in efficiency, etc. Widespread layoffs are a sign management has majorly fucked up.
- deviantbit 2y ago[flagged]
- Retric 2y agoAsking who funded it is kind of meaningless when you’re talking thousands of studies, it’s one of those topics that’s quite interesting for everyone from economists to management consultants. COVID was a mix of turnover, furlough, and layoffs, but the layoffs were generally of the exact type I was referring to. Shutting down a restaurant’s dining service doesn’t get the same kind of pushback as a 15% cut across a division. The company isn’t trying to do the same stuff with fewer employees, it’s no longer serving those customers.
- deviantbit 2y ago[flagged]
- Retric 2y agoSure the general consensus of experts is just like my opinion man. Numbers never lie, until they do.
- deviantbit 2y ago[flagged]
- deleted 2y ago[deleted]