Posted by JRSutton on August 25, 2014 at 07:04:44 from (71.174.108.252):
In Reply to: John Deere Layoffs?? posted by NE Iowa JD dad on August 25, 2014 at 04:52:36:
Don't put too much thought into large corporation layoffs.
Most large companies are comfortable being overloaded with employees and expenses.
It acts like a buffer for when things turn down, they can trim some of the fat (often called dead wood), without actually hurting production. Then the company can talk about how lean and mean it's getting, and how much more efficient they are now.
It boils down to share price - cutting into the buffer keeps the share price up.
Once they're over that temporary hump, it's business as usual, slowly building the buffer back up.
No large company wants "business as usual" to be peak efficiency - that'd be too hard to fix if things slowed down. Much easier to have a buffer.
That's why you'll often see a company do layoffs with no slowdown in their hiring. It's mostly smoke and mirrors.
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