LO and Big Layoffs LO5572

Wayne J. Levin (levin@astral.magic.ca)
Mon, 12 Feb 1996 23:55:43 -0500

Replying to LO5506 --

Concerning the corporate anorexia article in the Wall Street Journal ...

In 1988, before downsizing was known, Hayes, Wheelwright and Clarke (3
Harvard Professors) wrote in their book, _Dyanmic Manufacturing_ that
quite often the most profitable period a company experiences is the one
just before they go out of business. Downsizing is a no-brainer. Anyone
can boost profits by cutting out R&D, training, education, improvement,
etc. without any short-term implications (except a boost in profit).

What are the implications down the road? After you've downsized, and
realized improved profits, what will the CEO do for his next trick to
increase profits?

Wayne J. Levin, M.A.Sc., P.Eng
Process Improvements, Inc.
PO Box 77506
592 Sheppard Ave. West
North York, Ontario CANADA
M3H 6A7

"Wayne J. Levin" <levin@astral.magic.ca>

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