After Job Cut, What's Next ?

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Many companies are slashing jobs and what are their plans after that ? We also incorporate some companies who are not slashing jobs.

Company

Strategy

Microsoft

Own retail stores

Starbucks

Instant Coffee

Karpesky (not slashing job)

E-store

Grand-Flo (not slashing job)

Acquisition and China market

Green Packet (not slashing job)

To leverage on best practices; WiMAX-oriented “Intouch” product line.

Dell

Outsource



We can learn something from here...

  • Cash sales is crucial
  • Leverage on brand power
  • China is still good market
  • People will buy online. Check out a survey on Adobe Scene 7.
  • Focus on strengths

Comments

I-notice said…
next will be more job cuts, or so-call downsize everything. job cut is just a temporarily measure to reduce operation cost, to free out more cash flow when times are bad. define "bad-times", where sales are down,cost to maintain the business is higher than income, (when my allowance run low, i eat bread until my next monthly allowance comes in, right?) and cash is depleting fast. so what would you do? make more sales of course, but sales are difficult, awareness marketing needs money, means more cash going out. if sales continue to slump, you have to get a loan to keep on going to supplement your cash flow. over the period of time the loan tenure you have to pay interest, if you can't keep up with the interest, means you have to cut more cost by slashing more jobs!! so what next? more job cuts!!

Nokia Siemens network had the first wave early January of Voluntarily Severe Scheme means retrench with compensation. The 2nd wave is coming May-June 2009,

if things doesn't turn out good. Slashing job is the quickest way to free out cash flow. so even how productive you are in job market, all the tech or non-tech eventually end up in business cycle. Up and down of business .... so what if your laptop has 4GB RAM, when times are bad, you'll still need to sell to keep yourself a float isn't it? i stop drinking StarBuck, won't kill me if i stop isn't it? do i need it? well i have alternative or options to drink kopi-ice.

back in 1997 i was in thailand, every sales are bad, company go bannkrupt because people stop buying them, but Instant Noodles enjoy the best-sales of the decade in 199x!! hard to believe uh?

so GreenPacket is not slashing people "yet" but if subsciber didn't hit 250K subs. and international don't buy intouch.. do you think they will slash jobs? i bet they would.

Is Internet recession proof? unfortunately not really. when your money runs low, you will need to take care of your 'FOOD' first isn't it? EVERYTHING can go ... including internet subscriptions.
Mar 1, 2009, 6:24:00 PM
Brandon Teoh said…
Thanks I-Notice.

Very true.

Nokia-Siemens going for the next round ? I heard that Accenture is having employment freeze.

So, instant noodle is a good business, but not so good for health perspective.

If people stop subscribing Internet, Malaysia really in deep shit. I can't imagine that. Nothing will do well by that time.

During 1997, I heard advertising industry is the first to go down, and those people seek refuge in USA or Europe. Now, there is no where to go. Singapore even worst, the fixed deposit interest rates is lower than Malaysia.

I still think Green Packet can make it, because most of the people like me is looking to replace Streamyx. But they need to reduce the adoption cost.
Mar 2, 2009, 10:22:00 AM
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