DOWNSIZING
• Downsizing or doing layoffs is a toxic solution. Used sparingly and with planning downsizing can be an organizational lifesaver, but when layoffs are used repeatedly without a thoughtful strategy, downsizing can destroy an organization's effectiveness. How you treat people really matters - to the people who leave and the people who remain.
• One outcome of downsizing must be to preserve the organization's intellectual capital.
• How downsized employees are treated directly affects the morale and retention of valued, high-performing employees who are not downsized.
• Downsizing should never be used as a communication to financial centers or investors of the new management's tough-minded, no-nonsense style of management -- the cost of downsizing far outweighs any benefits thus gained.
Electronics giant Toshiba, hit by the collapse in computer chip prices, is to axe 18,800 jobs.
The firm, Japan's largest chipmaker, has confirmed media reports that it is to cut its global workforce by 10%. Toshiba is also exploring a tie-up with European rival Infineon, which has reported a slump of almost two thirds in profits at its memory chip division.
The moves provide further evidence of the difficulties besetting Japan's tech sector, still reeling from the announcement a week ago that Fujitsu was cutting 16,400 posts. Hitachi, Japan's largest electronics manufacturer is also considering cutting 20,000 posts, a report by a Japanese newspaper said on Sunday.
Hitachi on Monday confirmed it was to cut 800 jobs by March at its electronic materials and household chemicals unit, Hitachi Chemical, with news of more widespread cuts not expected for a fortnight.
Toshiba blamed the job losses, which will be enacted by March 2004, on the deteriorating business climate, which has affected firms in technology sectors particularly badly.
"The dramatic economic slowdown that began in the US at the end of 2000 is becoming a global phenomenon that has undermined worldwide demand for IT," the firm said in a statement. The majority of jobs culled - about 17,000 - will go from operations in Japan, where six of 21 factories will be closed.
A further 10,000 staff will be encouraged to shift posts within the group.
"With this action plan we want to regenerate the company," company president Tadashi Okamura said.
Resources:
http://humanresources.about.com/od/layoffsdownsizing/a/downsizing.htm
http://news.bbc.co.uk/2/hi/business/1511308.stm
Subscribe to:
Posts (Atom)