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Can layoffs really bring development opportunities to enterprises?
Can layoffs really bring development opportunities to enterprises?

Due to the weak economy in various industries, large and small enterprises have tried their best? Layoffs. It is reported that "Svenkai, the new president and CEO of Ericsson, confirmed that Ericsson will continue to lay off 7,000 people around the world next year to cut costs, and Ericsson's losses in the first quarter have been reduced by nearly half. Svenkai said that Ericsson will further reduce the operating expenses and sales costs of SEK1300 million to ensure sufficient cash flow. " With the bursting of the global telecom bubble, telecom equipment manufacturers have been hit hard. Even the giant in the telecom equipment industry, in the face of the weak market environment, Ericsson has to make such a decision: "The total number of employees will be reduced to 54,000 this year, and the total number of employees of Ericsson will be reduced to 47,000 next year."

Can layoffs really bring development opportunities to enterprises?

When the company is in crisis or in trouble, it should be able to deal with the imminent crisis by taking temporary layoffs. Because downsizing can cut off all expenses that do not directly promote production efficiency. So as to reduce manpower management cost, welfare cost and operation cost. On the other hand, due to the sense of crisis, it may improve the work efficiency of employees. What three people used to do can now be done by 1 person. Because the expenses are greatly reduced and the work efficiency of employees is improved, enterprises can still generate profits under the condition of fixed business. For example, Marlowe, an American telecommunications company, cut its staff from 750 to 180 during the recession, and laid off three quarters of its staff. "Now, people in Marlowe Company are hands-on, and all employees are responsible for copying and playing with coffee machines to make their own coffee. Although the sales at that time were still half lower than the peak period, Marlowe Company lost 75% of its employees, that is to say, productivity increased, and their efficiency increased by 65,438+05%. For another example, affected by the global economic recession, major companies in Japan's information technology industry are in a difficult situation, and NEC has laid off 2,200 people. According to the financial report of 20 16, the company has made a profit again. Moreover, Lucent Technology's loss this quarter is much lower than the loss of $535 million after layoffs and "slimming" in the same period last year. Revenue was USD 2.4 billion, an increase of 65,438+06% compared with the previous quarter, and operational capacity began to improve.

However, if the enterprise encounters difficulties, is it foolproof to use the sharp weapon of layoffs? Now, if there are difficulties and layoffs, where will the employees come from when the market situation recovers and the business expands again? Domestic IT enterprises are facing a severe test, and many IT enterprises are laying off employees. For example, a software development company in Wuhan has reduced from more than 400 people three years ago to less than 50 people now. This reduces the daily operating costs. But after receiving the business, there is no manpower to complete the task, and we have to recruit people. Although the business is very urgent, it has passed the customs, but as an enterprise, it always uses new employees, can it have stable development? More importantly, employees will think more about their future than whether the company can make a profit. Since the employees' goals can't be unified with the company's goals, is there any room for the company to develop? For another example, in order to make a profit, China Resources Venture plans to lay off about 3,000 people this year, saving it 50 million yuan. Analysts at ABN Amro believe that even if layoffs save the company 50 million yuan in operating expenses, it will still help the company turn losses into profits. Therefore, enterprises should not completely pass on management mistakes to employees, but should enhance the value of their own products and services, and grasping the market is the key.

I hope that managers from all walks of life will think more when holding high the double-edged sword of "layoffs", because human resources are the most precious resources of enterprises. Only careful management of human resources can effectively ensure the healthy and sustainable development of enterprises.

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