Layoffs play a big role in how a company performs.
Especially when it comes to high growth companies.
Case study here 2000-2001.
Especially when it comes to high growth companies.
Case study here 2000-2001.
Companies that laid off 3% or less of their workforce performed as well as those that did not at all.
Repositioning shows to be the best reason to cut staff, while cost cutting is seen as the worst.
Not surprising here, those that can not bear the cost fail the most.
Not surprising here, those that can not bear the cost fail the most.
The data from 2000-2001 shows that companies should only cut staff if the recession is deep (or to cut costs).
It takes about 3-6 months for companies to realize a downturn is on the way and another 6 months to lay off the staff, while a recession lasts an average of 11 months.
It takes about 3-6 months for companies to realize a downturn is on the way and another 6 months to lay off the staff, while a recession lasts an average of 11 months.
The point is fairly clear.
If it takes a combined 9-12 months to finish a layoff cycle, but a recession lasts an average of 11 months, companies could end up scrambling to rehiring during the new economical wave.
If it takes a combined 9-12 months to finish a layoff cycle, but a recession lasts an average of 11 months, companies could end up scrambling to rehiring during the new economical wave.
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