Lay Off the Layoffs

Source: Jeffrey Pfeffer, Newsweek, February 15, 2010

Much of the conventional wisdom about downsizing–like the fact that it automatically drives a company’s stock price higher, or increases profitability–turns out to be wrong. There’s substantial research into the physical and health effects of downsizing on employees–research that reinforces the seemingly hyperbolic notion that layoffs are literally killing people. There is also empirical evidence showing that labor-market flexibility isn’t necessarily so good for countries, either.

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