Wall Street is at it again.
The world’s top software firm Microsoft has been asked to cut its workforce by 10%, or about 9,100 employees, to tell the market that profits are more important than revenue growth in difficult times.
http://www.financialexpress.com/...
Brokerage firm Oppenheimer & Co’s analyst Brad Reback has said in a report on Microsoft that such layoff exercise "would be a healthy move for the company."
The move would be well received by the market and would "signal that profitability is more important than revenue growth during this very difficult time," Reback added.
This guy has no idea how disruptive layoffs like this are.
This is the type of disruptive meddling that one gets from Wall Street, no concern for the workers or the loss of training and intellectual property or time, no concern for froward product development or using the downturn to consolidate competitive advantage as the company that keeps the most cohesive teams is best positioned to exploit the recovery.
Nope, got to do a layoff to "send a signal". Oppenheimer is not in the software or the car business, they don't know how to do either, they just know what plays well with pension fund managers, who don't know how to run either business either.
Not only can a publicly traded company in this country not retain a sane amount of earnings for operating expenses because of leveraged buyout concerns which makes it a slave to the banks, it can not protect it's workforce which IS the compay without having a Wall Street Analyst recommend a "small layoff".
Business in the US have to deal with this shit ALL THE TIME. Pretty much no other countries tolerate this shit by their financial sector.
Also note that this was reported in the INDIAN financial press, not here. I wonder why?
Hope the next layoff is his.