CUTS ARE NOT REVENUE
Reed, owner of Variey, announced a 7% cut in staff according to The Wrap. it is due, they say, to poor financial results. Well, duh, where have you been all these months? The advertising business has been in the tank for at least two years or more. So why cut now and why at all? Too many companies are looking to their expense lines to keep them afloat. True, costs have to be trimmed when conditions warrant but how many can, or should, one make? Is there a limit to how much one can cut before they show the white flag? Do you cut until there is nothing left?
From all i read and hear cuts are the only choices being made. In my opinion cutting costs is a lot easier than building revenue. I have yet to read about a strategy for how to invest more resources in something new, or a strategy to increase staff to go after another area of opportunity. Strategies for growth must be forthcoming or all businesses will be on the ropes. There are still billions of dollars being spent on advertising. There are still thousands of companies looking to increase share of market in their field. Is there nothing a company can create that will not improve their customers bottom line? Every day there are countless stories about new businesses being launched on the internet or using the new media or technologies to a better use. If young people see the opportunity why then not the legacy companies? Is it a lack of imagination or maybe it was the imaginative employees that were let go in the last layoff? What a mistake that would be. If these legacy companies don’t learn how to compete in the new world they will forever be a part of the history of the old one.
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