How do you cut labor costs by 15% when the company has been operating at a lost?

Answer 1

When you say 'loss', do you mean 'less profits than last year' or completely in the red?

It depends. If you have 10 employees all working 30 hours a week, you can cut it down to 8 employees to work 40. Thats 80 hours a week less, and 2 workers that you dont have to pay workers comp or insurance on.

Answer 2

No business can survive long if it is losing money. Labor is the most expensive component of most businesses. I would look at those areas which may not be absolutely necessary to the successful operation of the business. You may be able to cut some positions and have those remaining pick up the slack and perhaps work extra hours. It may be necessary for some workers to take on additional responsibilities.As a last resort, it may be necessary to take pay cuts or reduce benefits in order to cut costs. Pay cuts should be the last thing to be considered. It can be demoralizing to a workforce. Unless the business survives, no one has a job.

Answer 3

In honesty the employer can not truly function no matter if that is exceeding the costs as in line with revenue. As you're saying many of the CEO's have a tendency to have wide bonus payouts and extreme salaries, which even as their employer is in problem I actually imagine ought to get replaced only so as that they take a lot less to grant the employer a chance to get decrease back on this is ft because it were. The banks are a properly social gathering! tens of millions paid out in bonuses each and each and every 365 days to the fat cats, yet they were in vast deficits which meant that others had to conflict through.

Answer 4

1. eliminate people
2. cut hours
3. cut salaries
4. outsource


if i were you i would eliminate 2 people that perform the weakest or tell them they can stay as parttime with no benefits and they will probably quit

remember it is a couple of you or all of you so make the decision

Answer 5

Outsource