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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!
LRCX 213.74+1.9%Feb 5 3:59 PM EST
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To: Grand Poobah who wrote (6398)7/28/1998 12:28:00 PM
From: Investor2  Read Replies (1) of 10921
 
Re: "Sure, they save money in salaries, but they lose in the severance packages, the de-motivating effect on other employees, and in the time spent on hiring and training when the upturn comes."

You are correct in your assessment of losses associated with layoffs. However, sometimes layoffs are necessary. Companies will not be able to reduce losses related to "the de-motivating effect on other employees, and in the time spent on hiring and training when the upturn comes." Companies will, however, be able to reduce losses associated with severance packages. I project that sometime in the near future, the concept of severance packages will go the way of company-funded pension plans and guaranteed retirement benefits.

Best wishes,

I2
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