E-Commerce Times Talkback
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Few companies would be likely to admit it, and even fewer would be willing to talk about it publicly, but layoffs can have business benefits that go well beyond short-term cost savings. When done right, they can even help improve morale by reassuring employees that their employer can make tough decisions for the good of the business. "The benefits are easier to spot when a company is obviously cutting fat, not muscle or bone," Carnegie Mellon University management professor Alan Montgomery told the E-Commerce Times.
We are entering a time of dichotomy. A time in which the urge to move people out of jobs is as great as the movement to cut holes in the social safety that was put in place to support those who had no other source of income. The first great outflow of employment sent millions of manufacturing jobs to cheap overseas firms, while keeping management and services here. The resourceful Americans re-focused, re-trained and re-tooled to become an Information Services economy.
Now, we find in the second wave those service and support positions being outsourced to foreign competition (or non-benefited contract labor at greatly reduced rates). Apparently the only jobs that cannot be sent overseas are food service, department store stockers, delivery drivers, and healthcare providers. Tele-medicine shows promise in exporting healthcare to overseas physicians and surgeons thanks to heavy investment by HMOs, so we may have all but the most basic of nursing care may be subject to export.
The upper management and members of corporate boards seem to feel pretty secure that they can produce their product and maintain accounting functions with overseas labor, while selling the product to an increasingly underemployed US population.
After moving all production and services to foreign countries, the burgeoning middle and upper classes of those countries create the wealth necessary to purchase the companies for which they work and move MANAGEMENT and the BOD closer to home. At that point, the US will cease to matter on the world stage. We will neither be the producer nor the great consumer of the world's goods. Then, the displaced workers will band together to surround the equally displaced managers and directors who made the decisions and eat them.