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Re: What Happens When You Cut Costs Too Much
Author: An Investor
Date: 02-24-2019 - 12:15

What's going on in the railroad business says a lot about Wall Street. Here's a question I would have for any CEO. You just announced a force reduction of X%. How was if those people were essential to your operation yesterday, but are surplus today? What has changed that makes them surplus? What process(es) does your company have in place to continually evaluate the current relevance of any job to your current operation?

I can see something like "The Coal business is down 50% from peak and isn't expected to ever regain that level again. We've cut those jobs that were supporting the portion of our business accordingly." To me that's am easily justified decision.

To cut 25% (or more) of Management staff in 3 years says you either had no real clue what they were doing and allowed your operation to become bloated (a Cardinal Sin for any business) or you're just guessing at who's actually necessary and hope it won't catch up with you while you're still CEO.

As an investor I'd like to have some idea if the CEO of a company I own or am investing in actually has a clue. I'm ok with a large payoff for a well performing CEO, but I'd like to see more bad performing CEO's punished financially. (i.e. Lowe's CEO & the Orchard Hardware Supply debacle.)

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Subject Written By Date/Time (PST)
  What Happens When You Cut Costs Too Much observer 02-22-2019 - 09:54
  Re: What Happens When You Cut Costs Too Much Bill Parcells 02-22-2019 - 16:57
  Re: What Happens When You Cut Costs Too Much Robert Kenneth Kraft 02-23-2019 - 10:11
  Re: What Happens When You Cut Costs Too Much conjecturitis 02-23-2019 - 16:40
  Re: What Happens When You Cut Costs Too Much Profit Squeezer 02-23-2019 - 19:00
  Re: What Happens When You Cut Costs Too Much synonymouse 02-23-2019 - 20:09
  Re: What Happens When You Cut Costs Too Much Chuck Fairbanks 02-24-2019 - 07:33
  Re: What Happens When You Cut Costs Too Much An Investor 02-24-2019 - 12:15


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