tag:blogger.com,1999:blog-13575764.post3351246388082985459..comments2009-02-24T23:27:43.189-08:00Anshu Sharmahttp://www.blogger.com/profile/16808179818443881370noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-13575764.post-3738368980426857362009-02-24T23:27:00.000-08:002009-02-24T23:27:00.000-08:00Hi Anshu - interesting post. For what it is worth, here's another perspective: companies take advantage of bad times to take actions that would cause a revolt under "normal times."<BR/><BR/>If your company is fat and inefficient, it is difficult to reduce during good times because: <BR/><BR/>a) Good results mask bad decisions / operations.<BR/><BR/>b) The workforce will not accept the need for a reduction when "money is pouring in." Even if the (in this case presumed) wise leadership realizes the need, it would be difficult to get the layers below to accept this, let alone the rank-and-file masses.<BR/><BR/>c) Wall St. may view the reductions as a leading indicator of future problems and punish the stock price.<BR/><BR/>d) Layoffs in good times results in severely negative press which is likely to hurt future results. It is easy to "get away" with reductions when everyone is laying people off.<BR/><BR/>Food for thought...Naeem Ishaqnoreply@blogger.comtag:blogger.com,1999:blog-13575764.post-20732803742948852482009-02-02T23:55:00.000-08:002009-02-02T23:55:00.000-08:00Nice post, good talking points. <BR/><BR/>I especially like the idea of talent as stock; buy low, sell high. It makes sense that in an insecure climate, panicking companies might act like frantic investors - they sell (lay off) right when they should be buying (hiring).LNIngramhttp://www.blogger.com/profile/02154575619670857377noreply@blogger.comtag:blogger.com,1999:blog-13575764.post-44772063786324293842009-02-02T15:42:00.000-08:002009-02-02T15:42:00.000-08:00Raj - You are right. Good point.Anshu Sharmahttp://www.blogger.com/profile/16808179818443881370noreply@blogger.comtag:blogger.com,1999:blog-13575764.post-28040077247825970842009-02-02T14:00:00.000-08:002009-02-02T14:00:00.000-08:00Companies, even those doing well at the moment, are not cutting extra fat only to please Wall Street. They are scared of these turbulent times when they have no predictibility whatsoever of their revenues two quarters from now. They are thinking ahead of the worst case scenario and cutting their costs so that their business does not suffer if and when things do really go south.<BR/><BR/>But this is a classic case of implosion (the reverse of the bubble). Bubbles are caused when everyone goes bullish and thinks there are great times ahead. Implosions are caused in a super-bearish mindset when everyone thinks the world is going to end tomorrow.<BR/><BR/>The only cure is if the government can instill some optimism.. that things will not be so bad.Rajnoreply@blogger.comtag:blogger.com,1999:blog-13575764.post-7961728665948924472009-02-02T11:58:00.000-08:002009-02-02T11:58:00.000-08:00I am sorry to hear that. I am hearing similar stories from other friends too. It appears there is a blanket cultural permission to lay people off right now.Anshu Sharmahttp://www.blogger.com/profile/16808179818443881370noreply@blogger.comtag:blogger.com,1999:blog-13575764.post-1845409834389374162009-02-02T11:51:00.000-08:002009-02-02T11:51:00.000-08:00Quote: Is it because sacrificing 3% of your work force is the equivalent of modern day sacrifice to please the Gods (on Wall Street)?<BR/>This is 100% correct, as it happened to me (and 70 or so others) BEFORE this latest mess even started. They THOUGHT that the Wall Street analysts wanted to see a staff reduction, so they got one. And Wall Street responded with a 50% drop in the stock price.Anonymousnoreply@blogger.com