Who’s to Blame for Layoffs?
I was speaking with a friend recently. He had worked for a large financial services company and had lost his job the day before our conversation. My friend told me that he hadn’t been surprised by the announcement. In fact, he knew it was coming for some time and was just waiting for his “package.”
Business is down more than one-third and the job cuts were inevitable, he told me. What he said next just about knocked me over. The company he worked for was laying off more than 80% of its workforce! 80 percent? Business is down by a third and you lay off 80% of your people? That doesn’t compute. How does the company get two-thirds of the work done with 20% of its employees? How does it continue to serve its customers? Either it was grossly overstaffed, which could have contributed to the company’s downturn, or someone’s overreacting and in doing so is sealing the company’s fate because there is no way it can continue to provide a quality service.



