It’s survival of the fittest, and partly, the more heartless. Laying people off is one of most effective ways companies can take to cut costs in order to keep themselves afloat. Others have also resorted to cutting back benefits and stopping contributions to retirement funds. Recent reports show no signs of these practices ending any time soon.
Going by the numbers, small organizations of 50 workers cut a collective total of 177,000 employees just in the past month. Mid-sized organizations laid off 205,000 workers and large business cut 91,000. While this shows a decline from past months, there is no indication whether this trend will eventually reverse.
“Despite notable improvement over the first three months of the year, when monthly losses averaged 260,000, employment among small-sized businesses is likely to decline for at least several months,” said Joel Prakken, chairman for Macroeconomic Advisors.
Small businesses relying on sales and consumer spending are likely to see slow growth in the next few months. With limited revenue, these organizations will undoubtedly look internally for ways to cut costs.
Source: CNN
