April 7, 2009

Some companies avoid layoffs, trim costs elsewhere

Filed under: FYI — 7macaw @ 11:51 am
Tags: ,

Even as the recession cuts deeply into their revenue, some companies are opting to do the unconventional. They’re keeping all their employees and finding other ways to trim costs.

For example, profits at Costco Wholesale Corp. are down 27 percent from a year ago, but the discount store has not laid anyone off. The only workers let go have been holiday seasonal hires.

Economists say it’s a wise move for some companies to keep their workers and cut elsewhere. “If you overshoot on the downside and lay off workers, it puts the company at a disadvantage when the economy comes back to life,” said Sean Snaith, economics professor at the University of Central Florida.

~News submitted by upthecreek

Source: The Salt Lake Tribune

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