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Old 03-17-2009, 09:53 AM
 
Location: Dripping Springs , TX
787 posts, read 1,716,898 times
Reputation: 205
Quote:
Originally Posted by EmBee View Post
Just wondering with all these layoffs or plan for layoffs, did they do any cost cutting measures prior to doing or even thinking about this. If they do, then I'm curious what cost cutting steps they took and whether they work to avoid layoffs. Few things I've heard were salary cuts, forced unpaid leave and forced vacation.
I am sure most if not all of these companies looked in other places to reduce costs before targeting employees. Laying off just to reduce payroll is not an efficient way to run a company. If your process is inefficient and requires 10 people to run it, laying off 2 people just means you can only get 80% of your work done, or, the other 8 people start working extra hours to make it up.

Normal approach is to reduce costs through reduction of material spend, such as how much inventory is being carried, postponing capital expenditures, pressuring your vendors to reduce cost, finding alternate sources of supply, and overall increasing the efficiency of your processes. These cost reductions will also cover the facility side of the business such as office space cost, service agreements, utility costs etc.

Headcount reduction as an exercise in itself is that last step a company will take. It is only a short term cost reduction. A company will survive only by becoming more efficient in how they do things.
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Old 03-17-2009, 08:16 PM
 
Location: 78731
621 posts, read 925,767 times
Reputation: 324
Quote:
Originally Posted by EmBee View Post
Just wondering with all these layoffs or plan for layoffs, did they do any cost cutting measures prior to doing or even thinking about this. If they do, then I'm curious what cost cutting steps they took and whether they work to avoid layoffs. Few things I've heard were salary cuts, forced unpaid leave and forced vacation.
My company recently negotiated lower healthcare premiums, stopped the 4% 401k company match, and the board members voted to cut their pay by 5%. Some admin folks have also had their hours reduced from 40 to 32 a week. Also, no overtime for hourly employees. All of that is labeled as "temporary cost reduction measures."

I've seen the billing projections and contract backlog numbers, and we're pretty sure these measures will be all that's necessary as long as the economy doesn't hang low throughout all of 2010. Then, well, it will get sticky...like across the board pay cuts and, god forbid, layoffs. (But we're planning for that now just in case.)

I am very confident that our board will do all that's necessary to avoid layoffs. We're a mid-sized firm that has the advantage of knowing (to a good degree) our billing projections for 6 to 12 to even 18 months out. Some companies don't have that luxury and might have been blindsided by the rapid drop in the economy, and therefore might have had to turn to layoffs quickly to bring costs in line with billings.
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Old 03-17-2009, 08:25 PM
 
Location: Great State of Texas
74,426 posts, read 34,585,424 times
Reputation: 17828
On a national level though big Corporations are after the short term profits..it's quarter to quarter to keep shareholders happy. Austin has it's share of big corporations that have had or are currently undergoing layoffs. All for short term profits by reducing operating costs ?

Mass Layoffs by Profitable Firms a Horrible Act, Diller Says: Tech Ticker, Yahoo! Finance

snippet:
"In some ways, it's hard to blame these CEOs: American capitalism circa 2008 is set up so that short-term performance not only gets the greatest reward, it's the only thing that matters."
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Old 03-17-2009, 08:38 PM
 
Location: 78731
621 posts, read 925,767 times
Reputation: 324
Quote:
Originally Posted by HappyTexan View Post
On a national level though big Corporations are after the short term profits..it's quarter to quarter to keep shareholders happy. Austin has it's share of big corporations that have had or are currently undergoing layoffs. All for short term profits by reducing operating costs ?

Mass Layoffs by Profitable Firms a Horrible Act, Diller Says: Tech Ticker, Yahoo! Finance

snippet:
"In some ways, it's hard to blame these CEOs: American capitalism circa 2008 is set up so that short-term performance not only gets the greatest reward, it's the only thing that matters."
That is exactly why, I think, America's strength lies in the not-so-big corporations and businesses.
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Old 03-17-2009, 09:00 PM
 
Location: Great State of Texas
74,426 posts, read 34,585,424 times
Reputation: 17828
Quote:
Originally Posted by thesonofgray View Post
That is exactly why, I think, America's strength lies in the not-so-big corporations and businesses.
Totally agree. Big business has no real stakes where they are..pull up and just move with no remorse. Small local business has stake in the game.

I always try to use and buy from local businesses first, even if they cost a bit more.
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Old 03-19-2009, 05:18 PM
 
Location: Austin
2,522 posts, read 3,656,378 times
Reputation: 676
good for you, happy tex.......small biz donates far more to charity, sponsors community events, and
hires more locals as well.....buying local is the way to go....
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Old 03-19-2009, 05:20 PM
 
Location: Austin, TX!!!!
3,737 posts, read 5,296,972 times
Reputation: 1665
Quote:
Originally Posted by inthecut View Post
good for you, happy tex.......small biz donates far more to charity, sponsors community events, and
hires more locals as well.....buying local is the way to go....
Plus small, local businesses keep the dollars local. They hire local accountants, local lawyers and other local business support services. The money doesn't all go back to corporate offices in some other city.
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Old 03-19-2009, 05:34 PM
 
Location: Austin
2,522 posts, read 3,656,378 times
Reputation: 676
Quote:
Originally Posted by Jennibc View Post
Plus small, local businesses keep the dollars local. They hire local accountants, local lawyers and other local business support services. The money doesn't all go back to corporate offices in some other city.
Jenn, great point......indeed, it keeps a circular flow going....thats why the national franchises are giant hoover vacuums, sucking cash permanently out of Austin......I NEVER patronize big box or franchise restaurants if I can help it......and I hate going in those giant warehouse stores anyway....I like to just shoot in and out......always patronize the local biz, cause that could be your neighbor, or a new relocatee opening up a biz..........down with national and international franchises!
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Old 08-11-2011, 11:55 PM
 
Location: Lake Placid
268 posts, read 258,517 times
Reputation: 104
two years later; Taaa-Daa!!! We're looking great!!
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Old 08-12-2011, 12:16 AM
 
Location: Pflugerville
2,213 posts, read 2,428,798 times
Reputation: 2175
Quote:
Originally Posted by Tim_Barton View Post
two years later; Taaa-Daa!!! We're looking great!!
LOL, good re-hash of an old thread.

Everyone says the sky is falling. One day maybe it will.

But probably not.
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