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Saturday, March 7, 2009

The First Cut is the Deepest

I saw an article in the paper today about Borders cutting back it’s workforce. It said that no top store managers were cut, but that managers responsible for inventory, training, sales, and merchandising were cut.

So a company that is struggling (it hasn’t been earning a profit) is going to cut the people responsible for the key areas that are needed to become profitable. Does this mean that they will have more inventory problems, untrained workers, fewer sales, and poor store merchandising? How exactly is that going to return the company to profitability?

During tough economic times, or any time really, you need to seriously think about what you’re doing, especially when you’re thinking of “cost cutting”.

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