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Opinion of the Day: Employees are important for a company as long as the company has results and shareholders are happy or until they get old

Key Points:

  • Company leaders often emphasize the importance of their employees, but this sentiment may change when business conditions deteriorate.

  • When profits decline or shareholder satisfaction decreases, companies may prioritize restructuring and layoffs to appease investors.

  • Elon Musk's recent actions at Tesla exemplify this trend, as he laid off employees while simultaneously announcing plans to expand production.

  • Similar restructuring efforts are underway at many companies, often without public fanfare.

  • Companies may prefer to hire younger employees at lower salaries to reduce costs during economic downturns.

  • While companies emphasize the importance of their employees during favorable times, they may prioritize financial results and shareholder satisfaction over employee well-being when faced with challenges.

Additional Notes:

  • Bogdan Badea, CEO of eJobs, observes that some industries are experiencing slowdowns, leading to "silent layoffs" rather than large-scale public announcements.

  • In Bucharest and other cities, multinational corporations are quietly halting hiring or initiating restructuring measures.

  • Companies may target positions with higher salaries for restructuring, making older employees more vulnerable.

  • Businesses face more rapid changes today than in the past, necessitating adaptability to maintain stability.

  • While employee well-being is often touted during prosperous times, it may become secondary to financial concerns when companies face economic pressures.

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