Das ka Dum with Dr Bhaskar Das | Given the near-blood bath in print with pink slips and salary cuts, do you think it’s fair that even profitable companies are doing this and not absorbing losses for 2-3 months?

03 Jun,2020

Bhaskar DasThis is a question which a lot of people are asking, and we think we’ve also asked this at least once earlier. But in the light of what’s been happening over the last few days, we thought it would be good to ask our Wizard with Words this question all over again. So without further ado: Das ka Dum with Dr Bhaskar Das. Read on…

 

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Q. There is a near-blood bath in the print media media with pink slips and salary cuts. Do you think it’s fair that even profitable companies are doing this and are not absorbing losses for at least two to three months

 

A. Your question is confusing. Are you asking the ethical side of the decision or the business side? Since I don’t want to comment on ethics, let me delve on the business rationale of your question. See, any business enterprise has to evaluate its options for running the enterprise by balancing the revenue and cost side. Any unfavourable skew of the balance has to be corrected so that the business doesn’t bleed. I presume staff costs would be an important component of the cost line. Rightsizing, automation, outsourcing etc are routes to optimise costs. These become an imperative when the topline of a business doesn’t grow at a faster pace than the cost line. With the headwinds of the current business environment, the response pattern is expected to be to remain afloat. It must be tough for an organisation too , but to save the enterprise, is there any other practical option?

 

 

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