“Copycat” layoffs won’t help tech companies or their employees
The professor recommends across the board pay cuts as an alternative to layoffs.> One thing that Lincoln Electric, which is a famous manufacturer of arc welding equipment, did well is instead of laying off 10% of their workforce, they had everybody take a 10% wage cut except for senior management, which took a larger cut. So instead of giving 100% of the pain to 10% of the people, they give 100% of the people 10% of the pain.Curious if there is research here on how this impacts the company?  Seems like it would also increase stress and encourage top performers to seek new opportunities.He also recommends hiring during a recession:> He actually hired during the 2000 recession and saw it as an opportunity to gain ground on the competition and gain market share when everybody was cutting jobs and stopped innovating.I suppose this works when it works, and then fails completely when it doesn’t.  In essence, this increases the risk profile on the company which seems problematic too.  Would be curious if there are studies that show the outcomes of these strategies.Perhaps there are no “good” strategies- just those that favor employees or those that favor investors.