myth about downsizing to save money
Posted April 29th, 2008 under lessons learned, what I do for moneyHaving survived (and not survived) close to 15 “reorganizations” with a resulting reduction in force, I believe they were initiated with good intentions for the company. The road to hell and all of that aside, several of these were nothing more than exercises in creative accounting. This year’s ledger will show a reduction in costs while still seeing the same revenue. They did not take into consideration next year’s financials or growth. Many were quickly followed by hiring sprees. I was once told that it was more expensive to find a position for someone in a different group/role rather than RIF’g them and giving them an “opportunity” to find a position within 60 days.