Ugly truth of layoffs: Firms invest huge resources to rebuild workforce

'Understaffing isn't always a result of management short-sightedness'

Employers these days seem to feel they have plenty of employees — maybe even too many as the economy slows down. That’s what’s driving layoffs of tens of thousands of workers in tech, banking and other industries.
 

But executives should be careful about making deep cuts. Because as the last three years have reminded us, having too few workers is almost always worse than having too many. When organizations are shorthanded, morale plunges and profits suffer. And companies often end up investing immense time and effort to rebuild their workforces not long after whittling them down.

“The good companies, whether