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Old 31-05-2005, 15:48   #1
Beam
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Default Job at risk

It was already announced that my company was going to "rationalize" staffing, it was still an unpleasant surprise when my manager called me this morning. I'll get a proposal to leave. No one understands why (other than some headcount officer in the US looking at his European numbers). The group I'm working in is short of people, I am on a project, annual reviews have been good and nature of work is in line with my level.

My manager also couldn't give any good motivation over the phone so I asked him to e-mail it as I am planning to challenge it.

Since I do not have any problem on the current project I decided to keep on working there, the Project Manager wants to keep me there and also understands that I might be less effective for the coming period of time.

This really is bookkeeping at its worst and the way they deal with people is a shame.

Some of you know the name of the company I'm working for, for the time being I'd very much appreciate NOT to mention that name here as we are still talking with each other.
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Old 31-05-2005, 16:23   #2
Lt. Killer M
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beam, that sucks!

They tried to do that to a friend of mine, luckily for him they had a large consulting firm in the offices at that time. They told the hoke office rather directly to INCREASE staff.

I hope they wisen up some!
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Old 31-05-2005, 16:34   #3
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I know the company you work for!

If it is a collective action then the fact that you are profitable wont work. With my company we had the same things going on. Good people making a lot of money for the company got fired and customers were very upset! Some workers were detached at customers and the next day they were gone!

It's hard to explain... It's pure shortsighted bookkeeping.

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Old 31-05-2005, 16:45   #4
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IMO, any profitable unit of labour should be kept, unless a firm faces a serious crisis of some sort.

If the firm's costs rise to a level which calls for laying off labour, then it would be rational to get rid of the least productive units first. Normally, you remove those who represent a higher cost to you than the revenue they are generating.

But I see more and more evidence that this is not either the short term or medium to long term strategy for firms today. To the extent that I ve looked at dynamic models for profit maximization, it has been argued that under cost benefit analysis, you should keep the parts of a firm that generates positive profit and reform the parts of the firm that generates 0 or negative profits.

So unless your company faces some difficulties that are to be considered serious, I think this whole cutdown is moronic.

if we also look at company value - then as ERIKK says, customer relations are worsened, which is reflected in company value declining. Thus the medium to long term impact of such a reduction can actually have net negative impact, even though wage cost is reduced.


From a personal POV, this sucks Beam. I know labour market is somewhat better for skilled labour than for unskilled labour, but I do hope you work something out.
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Old 31-05-2005, 17:23   #5
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From what I've heard and seen they did not even bother to make a proper evaluation of which parts of the company are running ok or bad.

Thanks for the support ppl, we'll see what happens in the coming weeks.
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Old 31-05-2005, 17:53   #6
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Wow this sucks big time Beam! Good luck with it.
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Old 31-05-2005, 18:20   #7
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That must be a blow to your face....
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Old 31-05-2005, 19:04   #8
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The bigger the company, the weirder the stories.

Good luck, Beam!
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Old 31-05-2005, 19:47   #9
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wow Beam that sucks bigtime.

keep us posted!
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Old 31-05-2005, 21:08   #10
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Damn Beam, that stinks! Hope you'll find another job quickly!
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