QUOTE(cherroy @ Oct 3 2009, 12:23 AM)
This is indeed true, at my area, factories and company are struggling to hire back people to meet the sudden rise in orders. They are having not enough people to produce.
You can't blame the brutal cut back early in the year, as there is almost no order or little order across and price of goods are tumbling fast, even my company's one of raw material, price tumbling near 50% over 3-4 months time, imagine those stock up a lot one, surely suffering.
You don't cut your expenses, you might not survive if there is no huge stimulus package to stimulate the economy. Company need to act quick whenever situation change. Company might earn less due to unable to meet the demand, but if company doesn't react in the first place to cut, if situation doesn't turn better, without the cut, company might not able to survive in the first place.
Well - that's absolutely right.
Good companies will respond very fast which may mean suffering for employees.
But it is a survival game. And the fittest survive.
Cost/Overhead cutting is where most of the last quarter earnings come from in good companies - productivity is increased and higher efficiencies....IMHO
Also: management must focus on real issues.
Hiring and training new workers will take some time.
My point is that for investment these so-called unemployment numbers may not be a bad thing.
Also - good companies with astute management will emerge leaner, fitter and more profitable....
<Just my opinion only>
This post has been edited by David_Brent: Oct 3 2009, 12:34 AM