Layoffs no cure

Feyi Boroffice makes three great points about big business laying off workers at The Recruiters Lounge (offline).

  1. Most companies don’t have much fat to trim. That’s right. A lot of businesses were running on empty during the boom. Employees are still expected to work longer hours than they are paid for and be on call at the management’s pleasure. So cutting staff means cutting bone not trimming fat.
  2. Human capital is at bargain prices. People will work for less money.
  3. If companies sack all the workers, who is going to buy their goods and services?