Factoid Friday – The Layoff Myth
40% [of companies] reported that downsizing did not result in reduced expenses and more than 60% did not experience higher profits after cutting staff
Source: Estok, D. (1996, June 3). The High Cost of ‘Dumbsizing.’ Maclean’s 109, 28-9
Why are companies so quick to pull the layoff card? My thoughts are that it’s because of the short term thinking of hitting the quarterly numbers.