Lay or Slay: The story of Layoffs by companies
“To win the marketplace, you must first win the workplace”- Douglas Conant.
Manpower is not just a term in business, it is their greatest asset due to which the business runs and is able to earn profits. They are the foundation on which these businesses stand tall. Businesses have to pay critical attention to their biggest assets. Look at the following figures:
It is thanks to the human resource of these companies which contributed to them reaching this height. But in the time when the whole world is fighting this serious pandemic i.e. Coronavirus (or Covid-19), these multi billionaire firms (and many others) are busy laying off their biggest assets. This is when most of these companies are decade old and have gathered many surplus and reserves from those years. Look at the number of employees they have fires in this situation:
I am fascinated what these billions in valuation are for? How did they manage to do that? What is the purpose of these valuations? Apparently, these valuations will keep their grass (read books) green and attract more investors for their business and ultimately increase the value of their shares (and that is their main aim).
In today’s time, even individuals are able to do complete financial planning so can’t we expect a sustainable model from these businesses for times like this. I think sustainable planning is merely a technical jargon for these companies, since they are not even prepared for these adversities. Now the question arises, don’t these companies plan for adversities like this in advance? What happened to reserves and surplus these companies were creating? Are layoffs the only option for the cost cutting? What other options could be possible for these companies?
Companies like this should be prepared from the very beginning. Major expenses of the company can be controlled in the initial stages. Overhead expenses should be the first one to control.
Regular parties in 5 star hotels in the name of corporate events
Travelling in business class when they can use economy
Staying in 5 star hotels in the name of business trips
Improving manpower planning and focusing on product and space integration.
What about these costs? Companies should focus on these types of cost cutting from the beginning. But you know the best part; these companies will spend millions of dollars hiring people when they are back to normal. Instead they could have reduced salary (pay cut) for some time so that employees could have been happy for being in the company and receiving basic pay. There are many other ways of cost cutting depending on the type of company, which should also be focused.
At last, I wonder why these companies race for becoming the fastest and biggest billion dollar companies when they can’t even afford to support their employees, who gave their best to them. They have lost the core value and essence they are running for.