11-19-2008
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Join Date: Nov 2006
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sometime I think the cost cutting is more playing with the books, you look at the current financial meltdown and you hear of all the layoffs coming, citigroup planning to 75000 worldwide sounds frightening. But actually if you think about it, sometimes it's all nonsense, banks and most major corporations need manpower, they need IT services, HR services, accountants, if they cut everybody then how are they going to operate their businesses?
What they usually do is immediately after they layoff they start hiring sometimes even the same people, somebody once told me in the world of accounting permanent employees are considered overheads, but contract staff are considered expenses so the big CEO at the top says cut 75000 employees but they hire back maybe 65,000 as contractors so on the books at the end of the year they can show to their major shareholders ... " hey look our overheads reduced dramatically .. but our expenses have increased considerably... we've achieved our objective, give ourselves a pat on our backs to justify that big fat bonus ... blah blah blah ..."
it's all about paper play and how they cook their books to make things look good -- crap
Last edited by sparcguy; 11-20-2008 at 12:04 AM..
