August 2010

'Extreme Downsizing' May Hurt Companies Later

From NPR.org.

During the Great Recession, U.S. companies laid off workers in record numbers as firms struggled to survive and eventually return to profitability. Despite the slow economy and high unemployment, profits are returning at many companies. But companies that made deep job cuts may suffer in the longer term.

Alcoa, the big aluminum maker, was one of the biggest job cutters in the recent recession. The company slashed payrolls in its core business by about one-third.

"We essentially eliminated 30,000 jobs," Alcoa spokesman Kevin Lowery says. For Alcoa, and for many other companies, the immediate goal of mass downsizing during the recession was the survival of the company.

Full article.

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