Why do companies have continual layoffs and cry that they arent being efficicient?

Answer 1

Sometmes its because the people have been workign there long enough their raises/pay is getting to high.

A lot of businesses will assess their expenses and profits and there will be only a certain amount they can pay their workers up to or they will not be "efficient" in making a profit. It will cost more to pay then they will be making..so they let the older workers go. This is especially true if the job requires little training and is fairly simple.

How about answer this, coperations want to save money and time so they outsource a long term project but then they pay the outsourcer $150.00 an hour (and they pay their employee only 20.00 an hour) when if they had just bothered to hire somone themselves they could have payed the person $30.00 an hour. The person would be happy because he'd have a good job and they would be saving a ton.

Answer 2

It tends to be a downward spiral. There have been a number of studies that show that layoffs don't generally improve efficiency or cost-effectiveness over the long run. However, they DO allow a company to show improved short-term profitability.

So, there's a layoff - fewer people to do the same work (because no one is reviewing how to streamline processes at the same time the layoffs are taking place) - work processes become less efficient - so revenues decrease and efficiencies decline further - so then there's another layoff - still fewer people, still handling even more work - you begin to see the cycle here.

If companies would improve their processes before whacking heads, they may improve efficiency to the point where whacking heads isn't necessary - but in this economy, many firms go for the quick fix rather than planning for the long haul.

Answer 3

The fact of the matter is, that when companies, I mean medium, large, and very large companies including Multi-national companies actually do very well when they do a layoff. A layoff is a huge tax deduction and actually makes them more money. So they choose efficiency over profit and guess who wins.

Answer 4

They're usually trying to find more efficient people. Just because they have a lot employees doesn't mean they are efficient. They want people that are good team players, aren't cutthroat with their coworkers, and put out a lot of work. Sometimes overachievers.

Mostly, the problem does not lie with the employees. It's the company and the management. To be a good manager, is to be able to motivate their people to want to put out a lot of work. Also, they should have good delegation skills so that tasks are managed in a way that improves efficiency.

But some companies... are just plain hypocrites and whatnot.