Hi Ray! I agree with your comments regarding complacency with cost containment and the fact that not all layoffs are followed through on. I'd like to add another. It lowers expectations regarding earnings going forward so companies don't take the type of hits we've seen previously. It also increases the chances that the market may even rally on the news in the future since expectations were so low to begin with.
On another of your comments though, >> and it definitely cracks the whip on the staff, who, when they aren't totally demoralized, are competing to be among the survivors. <<
Competition going forward won't be with the same enthusiasm and zeal. It never is. People will hang on because they have too, but when the opportunity comes for them to move on, they will.
I recall the first time I was terminated by a company. I had earned salesman of the year followed up by manager of the year. Middle management and I had some philosophical differences, I stood my ground, I was fired. I appealed to higher management, proved to be right, and reinstated. It wasn't the same any more. The fire in the belly had gone down.
The demoralization some of these employees are experiencing will have lingering effects. It's a shame really, but a natural part of the cycle of business.
Thanks for your comments,
dabum |
