Monday, February 25, 2013

Why Global fierce lift layoffs

The 2013 fiscal year is about to begin, the major listed companies to cross past year transcripts. "Coincidence",

The fourth quarter earnings, and annual report prior to the disclosure, the big companies are invariably choose --- layoffs.

This week, Nokia announced that the world once again lay off 300 people, and 820 jobs outsourced to India; Last week, Morgan Stanley announced the layoffs of 1,600 people; Last month, the United States announced the layoff of 11,000; little earlier, the Swiss bank layoffs 10,000 people ...... "
Not chipping away, but a massacre ", the UBS employees retrenched go on Twitter so complain.

Large-scale layoffs, and how to balance the risk of Business Conduct and Ethics? Micro and macroeconomic impact?

The reporter interviewed relevant experts.

The cost down profits rose layoffs earnings looks beautiful

Yesterday, the Confederation of British Industry and PricewaterhouseCoopers survey pointed out that the quarter or have been laid off 25,000 people in the UK financial industry, together with

The season expected 1.8 million people, including the dismissal of six months may cut 43,000 hands.

Not only in the United Kingdom, the European and American financial industry is also suffering from the impact of layoffs. Bloomberg data shows that since last year, global
The financial sector has more than 11.5 million people have been cut, the regulatory authorities to tighten control on the industry, forcing companies to the end of the non-core business or staff reductions, in order to save costs, and meet the increasingly difficult operating environment.

The effect was immediate layoffs. Flowering new head of Michael Korba In announcing the cut, including private banking chief investment
Owned official, including the 1.1 million people after Citigroup stock price rose more than 6%, investors move to layoffs popularity is evident.

Last week, the United States released the first earnings report after the management changed hands, come up with a satisfactory fourth quarter results: Excluding
Layoffs ready to adjustments made by the gold and the market value of its own debt, the bank earnings per share of $ 0.69, higher than the same period last year.

Financial institutions on Wall Street yesterday also announced quarterly earnings report, Goldman Sachs and JP Morgan's results exceeded analysts' expectations,

Overhead decline and other factors, the size of Goldman's profits increased by almost tripled, to $ 2.8 billion.

Goldman Sachs in the fourth quarter of quarterly pay drop of 11%, to $ 1.98 billion, thanks to measures to cut hundreds of jobs. This period pay accounted for Goldman Sachs income share fell to 21%, one of the lowest levels for the line since its listing in 1999.

In this regard, the School of Economics of Fudan University, Institute for World Economics, Professor Ding Pure interview with this reporter, said, "layoff Home
First, an enterprise behavior, a judgment of the economic situation, caused by economic weakness in corporate profits is not optimistic, thus
The need to reduce costs through layoffs. '

In fact, in the financial industry, human resources are the most important resource and cost. Dismissed employees in a large part of the Managing Director
Highly paid senior bankers to executive director level, they are sitting on tens of millions of dollars in annual salary, cut off their upcoming disclosure
Financial Statements "beautifully" undoubtedly have the effect of significantly improved.

Although layoffs can rapidly reduce spending, the financial statements look nice, but analysts also pointed out that "investors
Want to see management how to improve the profitability of its core business earnings straightforward. The next few quarters, he
We must continue to report the good news for the job. '

Short-term "doping"

May lead to long-term recovery is weak

This round of layoffs since the start of the financial industry, has spread to many countries far more than industry. IT, fast consumption machine
Mechanical manufacturing is the hardest hit.

"The economic downturn is still the main reason to this reporter, School of Economics and the School of Management Professor Shi Jianxun table
Shows. Second, the advances in modern technology also increased the company's employment pressure, some of the projects or the field of "many people but not practical
Value or efficiency ", resulting in" more dependent one is more of a legal risk "situation.

Layoffs as a corporate cost-cutting as a form of enterprises may be effective, but not necessarily beneficial to the recovery of the economy as a whole. Professor Shi Jianxun analysis layoffs caused by the large number of unemployed people in a society have a destabilizing factor for the already weak economic situation is undoubtedly worse.
This will produce a vicious cycle of corporate layoffs, reduced the spending power of the unemployed population, and thus a drag on the larger environment,
Negative expectations of the environment, would affect business confidence, thereby increasing the possibility of once again make layoff decisions.

For the long-term development of the enterprise, the layoffs is not a "one size fits all". A British-owned executive search firm experienced recruitment consultants
Said to the reporter: "When the economic recovery, a new potential candidates might be had massive layoffs the company
Concerns that this company treats employees enough humanity. '

The lubrication "layoffs indifference collar tray leave system

In the movies, we often see the such layoffs scene: received a phone call, sent to a carton, finishing, leave. And
The reality is even more dramatic than the movies. UBS cut 10,000 jobs last year, did not notice the staff, a lot of people discovered how the morning
It also can not open the mailbox of a company, did not know he had "been canceled.

Despite the layoffs, some simple and crude, but the majority of the CD only complained on Twitter, not with the company
Conflict behavior.

Why Western mass layoffs events, both employers and employees can do good terms? On this point, Fudan University
Institute for World Economics of the School of Economics Professor Ding Chun, said: "The layoffs are an institutional, procedural measures, the market today Ling
Live, tend to improve, there are already a lot of the social security system, no longer need to carry out some special appease measures. '

The previously mentioned recruitment consultants told reporters that on the the layoff experience point of view of the 500 companies they serve, first
In the economy, the company will be in strict accordance with the principle of labor law N +1 compensation, to minimize the risk of employees for arbitration or even litigation.
In addition to financial compensation, also attaches great importance to the psychological feelings of the employees. For example, a few months in advance notice, wages
Be paid as usual, the staff can during this time to find a new job; staff to write a letter of recommendation, resolve that they encounter in the downsizing process
Specific difficulties; told them that the company's door is open, when the company's business improved recruitment, will be the best
Consider them.

In fact, the "sacrifice" in the large-scale layoffs of employees, do not be too upset. Swiss industrial sector cut 10,000 jobs last year.
University of Lausanne, a new study shows that 2/3 of them quickly found work "the collective redundancies victims in conflict
Contingent unemployment when their career and social ability has not been questioned. Definitely better than a separate dismissal by collective redundancies
Less discrimination, in this case, all enterprises and employ such personnel and very few scruples. '

The study also shows that when a company shuttered competitors in the industry can benefit from, so that a number of sudden
Contingent in the job market, high-quality talent for their own services. The experience and expertise of the staff still receive attention.

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