I think it's socially irresponsible to hire too many people during good times, only to lay them off when the business cycle goes South. It happens all the time, I've seen it firsthand. Today, many firms use layoffs as a way of telling Wall Street that they are being responsible – and frequently they get a short lived bounce in the stock price. Note the phrase 'short lived'.
Layoffs: Unless required for survival, a horrible act
Posted on December 11, 2008
In my view, socially responsible companies don't need layoffs when they are still viable or making money. It is not an expense reduction strategy with an upside. It should be a strategy of last resort, recognizing the pain and suffering that layoffs bring to its victims.
I'm not alone in this view. Last week, Barry Diller went on record saying that layoffs are a horrible thing to do to people and society when your company is not at risk of bankruptcy. For once, I totally agree with him.
Check out this video story: Mass layoffs by profitable firms a horrible act