Here we go again.... if they keep going eventually they'll be no one left.

[Marker]

"several thousand" layoffs announced again. Apparently sources are saying another 5000 or so. But then, they've said nothing internally yet, this is all just from the news.

[Ian]

Ugh ... I can relate. Being in the mortgage business, layoffs have become a quarterly occurance for us. Next round is rumored for February.

I, too, wonder if corporate America is ever going to look beyond the short-term fix of "rightsizing" (or whatever new euphemism they're using these days) when it comes to weathering the tough times.

I mean at some point, after all these layoffs and outsourcing, there's not going to be anyone left in the U.S. with jobs outside of like a handful of overpaid executives! Do they ever stop to think about who's going to buy what they're selling then???

Anyway, good luck ... I hope you survive this round ...

[Disneyatic]

I totally agree that I wish companies would somehow address the source of problems instead of just putting a band-aid on by cutting jobs.
Most of the jobs that get cut are the people who are actually "in the line of fire" and do the day to day things to keep companies going.
My company is directly related to the "disposable industry" like foam cups, etc. and has been having issues for the last few years and I have watched our work force reduce by almost 3/4 with another layoff coming this February that I am not sure if I am safe from.

Good luck and I hope that whatever happens turns out well for you!

[Ian]

What's sort of ironic is that it's been basically proven that cutting staff very rarely results in any actual cost savings for the company. Between lost productivity (related to morale issues, reduce capacity, etc.), severance costs, etc. you rarely see any real benefit from headcount reduction.

It's done primarily for Wall Street purposes ... to make you look like you're taking steps to reduce costs or whatever.

The other irony I normally see is that it seems like every time we lay off Indians, we add another Chief. I swear every day I read we hired some other new exec (who, I'm sure, is making 20 times as much as the line workers they just got rid of). Eventually we're going to have more execs than we do people to manage!!

Drives me nuts!!

[Jeff]

Good luck Marker.
I agree with the postings above - coorporate America has lost its long range vision.

[Scar]

Not saying that this applies to anyone’s situation here, but I would like to point out that sometimes layoffs are a good thing.

My SIL worked for a Fortune 50 company for 25 years. Every so often (5-10 years), the company would announce layoffs / retirement packages. Of course everyone would be nervous. By the time all the layoffs were complete, the ones who were left realized that is was only the unproductive people that were let go. The good workers were still there. Inevitably, 6 months or so later they would begin hiring again. It was just a ploy to get rid of the “dead wood” and bring in some “fresh fish.”

[Disneyatic]

The layoffs that our company keeps having are very disheartening. There have been alot of people that had worked here for 15+ years and they were very good at what the did.
But the "positions were eliminated"...which I have learned is a fancy way to say that they are redistributing their work to the people that are left....but offering NO extra pay!

And I totally agree about the chiefs vs. indians...other than our production workers, I am the only person left that is not a manager! UGH

[murphy1]

The other irony I normally see is that it seems like every time we lay off Indians, we add another Chief. I swear every day I read we hired some other new exec (who, I'm sure, is making 20 times as much as the line workers they just got rid of). Eventually we're going to have more execs than we do people to manage!!

Drives me nuts!!

Bingo! I worked in insurance and there was just constant restructuring, buy outs, you name it. Then in Florida, you were capped on any certain lines of insurance you could sell. I seriously don't know how college grads starting out now afford a house especially. It's getting worse.

[Marker]

Not saying that this applies to anyone’s situation here, but I would like to point out that sometimes layoffs are a good thing.

My SIL worked for a Fortune 50 company for 25 years. Every so often (5-10 years), the company would announce layoffs / retirement packages. Of course everyone would be nervous. By the time all the layoffs were complete, the ones who were left realized that is was only the unproductive people that were let go. The good workers were still there. Inevitably, 6 months or so later they would begin hiring again. It was just a ploy to get rid of the “dead wood” and bring in some “fresh fish.”

Most of the "fat" has been cut long ago, several layoffs ago. Unfortunately, we're getting to the point where often times it's difficult to get projects done. Many groups are understaffed, and a great deal of applicable knowledge of our systems has packed up and left, either from being layed off, or taking a voluntary separation package, or just plain leaving. The result is, without that knowledge, and with reduced staff, everything we need to do takes much longer.

We've been laying off and cutting costs for so long that last year, after cutting costs by reducing about 5000 personnel, the stock prices continued to fall. Apparently ( at least our version of it) Wall Street was seeing that we were cutting too deep. If you keep cutting staff, at some point, you can no longer produce.

But, we've got a brand new CEO, and he's gotta make an impact quickly.

Still nothing internally, only heard stuff from the new. Except, our new CEO is saying we'll probably consolidate our headquarter. Since the merger, they've maintained 2 headquarters. One in KS, one in VA. Sounds like VA is on the way out.... of the 5000 projected layoffs there are over 4000 people out in Reston VA. That could be REALLY bad news for a lot of them.

[Ian]

Not saying that this applies to anyone’s situation here, but I would like to point out that sometimes layoffs are a good thing.

My SIL worked for a Fortune 50 company for 25 years. Every so often (5-10 years), the company would announce layoffs / retirement packages. Of course everyone would be nervous. By the time all the layoffs were complete, the ones who were left realized that is was only the unproductive people that were let go. The good workers were still there. Inevitably, 6 months or so later they would begin hiring again. It was just a ploy to get rid of the “dead wood” and bring in some “fresh fish.”I'd just like to point out that the motivation for this is not always as pure as you make it out to be ...

"Dead wood" is also a euphemism in the business world for "people who have been here a long time and are making too much money."

Companies will often lay off long-time employees because they no longer want to pay them what they're making. They know they can get some "fresh fish" (to borrow your team) for a heckuva lot cheaper than what they're paying for the experienced people.

It's another example of short-term corporate thinking. Yeah ... they save a few bucks on salaries, but they just lose it on the back end in the form of reduced productivity, loss of key business knowledge, etc.

Honestly, my opinion of the current crop of leaders in corporate America couldn't be lower. This "only concerned about the next quarterly earnings statement" mentality is killing American business.

I think the curse of stock options is largely to blame ... that and the way The Street works these days.

[Jeff]

This "only concerned about the next quarterly earnings statement" mentality is killing American business.

I think the curse of stock options is largely to blame ... that and the way The Street works these days.

Unfortunate, but I'm afraid it is true.:(

[Ian]

Here is a PERFECT example of what I'm talking about ... look at this!


Intel, announced their Q407 results this afternoon after the stock market closed. While profits grew 50% and they had another stellar quarter, Intel came in $100 million dollars shorter than what was expected. Because of this, Intel's trading price fell roughly 16% to stand at $19.45 per share.So Intel's profits grew by FIFTY-PERCENT but that wasn't good enough for Wall Street. Since they missed meeting some arbitrary and meaningless "expectation" their stock fell by SIXTEEN-PERCENT!!!

Can someone explain to me how that makes any sense at all???

[DizneyRox]

Here is a PERFECT example of what I'm talking about ... look at this!

So Intel's profits grew by FIFTY-PERCENT but that wasn't good enough for Wall Street. Since they missed meeting some arbitrary and meaningless "expectation" their stock fell by SIXTEEN-PERCENT!!!

Can someone explain to me how that makes any sense at all???
You ain't never heard of Bizarro World? :D

[offwego]

Here is a PERFECT example of what I'm talking about ... look at this!

So Intel's profits grew by FIFTY-PERCENT but that wasn't good enough for Wall Street. Since they missed meeting some arbitrary and meaningless "expectation" their stock fell by SIXTEEN-PERCENT!!!

Can someone explain to me how that makes any sense at all???

Often the problem is the company them selves..they release to the stock anaylsts the "projections" themselves and then if they fail to hit it...and so that they get a boost at "projection" they will set a high target (like the 60) which then gets priced in so to speak and them wham you miss by a little (and unless you restate it will hit at release time) there you are.

Even in my "little commercial world" I have to constantly coach my clients to give me real numbers...if you do better fantastic but don't come back to me with worse.

[BelleCiavo]

By the time all the layoffs were complete, the ones who were left realized that is was only the unproductive people that were let go. The good workers were still there.

Some companies lay off by seniority.

[ncscgirl2005]

I'd just like to point out that the motivation for this is not always as pure as you make it out to be ...

"Dead wood" is also a euphemism in the business world for "people who have been here a long time and are making too much money."

Companies will often lay off long-time employees because they no longer want to pay them what they're making. They know they can get some "fresh fish" (to borrow your team) for a heckuva lot cheaper than what they're paying for the experienced people.

It's another example of short-term corporate thinking. Yeah ... they save a few bucks on salaries, but they just lose it on the back end in the form of reduced productivity, loss of key business knowledge, etc.


:thumbsup: I agree with you Ian. This happend to my mother as well. She worked for the same company (not a big corporation but a family owned business) for 22 years and was "let go" with no warning. They promoted a young "fresh" manager to do her job thinking they would save money but he ended up costing them a lot in the long run.

It actually worked out for my mom though because she was diagnosed with breast cancer about 3 months after that. She would have ended up taking a bunch of time off if she had been with the company. This way she was able to actually focus on herself and getting better instead of worrying about that place. About a year later the owner called her crying (yes, literally crying like a baby) telling her what a mistake he's made and he needs her back to help him out. Needless to say she didn't go back and he ended up selling the company.

[Marker]

And there it is, the official announcement. ANOTHER 4000 jobs cut (company wide), 500 from IT (that's me), that about 10%.

And they're throwing us another Voluntary Separation Package opportunity. Looks like it's decision time again.

[ncscgirl2005]

Sorry to hear that Marker. Good Luck.

[Marker]

...and the stock price is hemorrhaging. Dropping like a rock....... I guess you could say the price is falling with "Sprint Speed"