Archive for October 16th, 2008

Why layoffs are bad for business

Thursday, October 16th, 2008

Stanford business and engineering professor Bob Sutton writes today on why massive layoffs are bad business decisions:

One big lesson from research on downsizing is that when organizations hold-off on layoffs as long as possible and do less deep cuts, they tend to bounce back faster (compared to similar organizations that rely more heavily on layoffs) when the upturn hits (especially organizations with skilled workers). This happens, in part, because they save recruiting and training costs when the demand for their people returns, and by keeping their experienced workforce around, they can move more effectively than competitors who are scrambling to hire and train new employees with the right skills.