Are Employee Reductions Really the Answer?

This group is open to anyone who would like to discuss the impact being unemployed or under-employed has on your spending habits. Even though you are only one consumer, your reduced buying power affects multiple industries.

I would like to discuss the various cause and effect relationships of the very common practice of terminating employees during the holidays or when sales are down.

My hypothesis is that companies that tend to let workers go during the holidays to make their bottom line look better for year end actually do more harm than good to their bottom line. By removing consumers from the purchasing group there is a trickle down effect that causes increased unemployment in several industries.

By reducing employees it also reduces a company's ability to provide excellent customer service which causes some customer's to buy elsewhere.

There is also an impact on the employees who are left behind. It is sad when you lose your friends or coworkers. There is also usually an increased workload. Don't kid yourself into believing this doesn't affect productivity.

I don’t believe that employee reductions are really the answer to returning companies to being profitable again. I think there has to be other answers and would like to have group discussions with others on this topic.