Why companies lay people off to meet goals

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It just seems counterproductive, removing your workforce because you want to grow more

In: Economics

14 Answers

Anonymous 0 Comments

ok, we hired 10 people to make 100 widgets. When we sell them all, we’ll be a profitable company!

OH NOES! widgets don’t sells that well and we should have only hired 8 people to make 80 widgets? Fire 2 people so that we’re not over producing for a market that can’t sustain this size of a company.

They want to meet PROFIT goals. Not growth.

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