A quick thought on “downsizing” strategies

Sometimes companies realize that they need to reduce their staffing costs, and typically they do this by getting rid of employees.

Two common approaches to this are:

  1. A layoff
  2. Freeze wages and hiring, and wait for people to leave

Option #2 is braindead.  With a layoff, you get rid of your worst people, but with a wage and hiring freeze, you’ll typically lose your best people.

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