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by tdb7893 467 days ago
A good friend of mine has a PhD in labor economics and is now a senior management consultant for a big firm and I've been told that in general just cutting people is bad for businesses and most businesses will be worse off by just cutting people, especially without changing any of the underlying systems that got the company to the position it's in. Next time I'll have to ask him about the studies on it but there definitely isn't a consensus that general layoffs help businesses in the medium/long term. He was saying the times they seem to work best is in the context of a broader restructuring, (which in my experience is not common for companies).