Lay-offs may cause companies to sustain higher long term costs

[True Believer]

Retrenchment is the preferred method for employers to make sharp short term cost reductions to regain a competitive edge. This mainstream practice to incur a one‐time cost to gain annual savings appears to be grounded in sound financial logic. However, forced lay-offs may actually cause companies to sustain higher longer term costs.

 

[ThomasEddy]

Retrenchment is the preferred method for employers to make sharp short term cost reductions to regain a competitive edge. This mainstream practice to incur a one‐time cost to gain annual savings appears to be grounded in sound financial logic. However, forced lay-offs may actually cause companies to sustain higher longer term costs.

Retrenchment is just to buy more time for companies who either over predict the number of staff they hire and push it back to the employees. Then after retrenchment some companies will start to rehire in 3 mths time. That raises the question why hire retrench in the first place?

 

[Vlad Tepes]

Retrenchment is the preferred method for employers to make sharp short term cost reductions to regain a competitive edge. This mainstream practice to incur a one‐time cost to gain annual savings appears to be grounded in sound financial logic. However, forced lay-offs may actually cause companies to sustain higher longer term costs.

Even you get financial analyst to forecast these possibilities for the next 2 years. No 2 shits will be given. It's the race to the bottom since this nearly 30 year old+ globalism, multi corporate funded capitalism started.