Reply to thread

Message: <blockquote data-quote="Numion" data-source="post: 2701601" data-attributes="member: 124">Cost cutting is a tricky business. At work one guy does research on plant maintenance. He's a pretty well known name on the subject, which might not mean much. Anyway, he had a case where a power plants management had cut expenses 10% across the board, including maintenance.The result was increased plant outage due to failures. The 10% saving in maintenance resulted in 5-10 times that amount in losses due to lost production in the following year.Similarly cutting workforce will seem good at first, but the long term effects might be much more harmful, if too much people are laid out. It's a tricky thing to plan anything long term when everyones just interested in profits for the last quarter. In my job we had a similar X% cheese slicer a few years back, each department had to lay of certain number of people. The stupid thing was, of course, that our department was doing positive result, and as a result our profits decreased. I work at a research facility, BTW, where the number of people working is the absolute limit for work done, since each billed hour has to be allocated to someone's daily quota.</blockquote>