Rarely do companies thrive by cutting heads with only the bottom-line in mind. This has proven to be an extremely ineffective practice that nearly always renders the company defenseless in its market. In most cases the best and the brightest people leave first before they are let go.
Give me the name of any tech company other than IBM that survived let alone thrived by cutting headcount without regard for their future. Digital, Xerox, Kodak, Nortel, Lucent even HP has implemented this “cost cutting” practice, and they all went under or are now irrelevant.
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Tom Marin is the Founder and President of MarketCues, Inc., a national consulting firm. He has worked for some of the world’s largest corporations and middle-market firms. Tom’s focus is to help CEOs drive their strategy shifts and strategic growth programs. Follow MarketCues on Twitter. Tom also welcomes emails new LinkedIn connections or calls to (919) 908-6145.