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| *Ostroff, Fair and Company>>>Marketing & Sales |
Why is it that when a co. restructed some people are left without jobs. Pls help. Tks? |
Why is it that when a co. restructed some people are left without jobs. Pls help. Tks? ive been with my current company for 10 years now, and I was there when it was a result of a merger. the reason why people are left with no jobs is bec. there are redundancies - two people could be holding the same position . example, bec of the merger, there may now be 2 marketing managers and if there's no other position to be offered to the other one, there's a redundancy. another reason is downsizing to keep the business afloat, not necesarily bec of a merger but bec of circumstances (low profits, etc). but always, the person that is left with no job should be well-compensated by the company when asked to leave. Normally when a company restructured, they will look at the job that the individual department is performing. If there is two department doing the similiar job, then there will be a decision to close down one of the department that resulted in some staff being retrenched. If restructuring is necessary, it is because either the company wasn't making a sufficient profit or a result of a merger. Cutting jobs and elimination of redundant positions are part making a profit. The good thing is there are plenty of jobs right now. Yo Jade There are many reasons why companies go into a "reconstruction"-- or "reorganization" Some of them do this because they have to realign to meet changing business patterns and trends --- others do this as a process when they "merge" with another company or are acquired by another company in a "buy out" process !! This almost always means that some people are going to lose their jobs --- reason being -- in most cases --- slimming the company payroll to improve the bottom-line or profit margin !! They see the "reconstruction" process as a perfect time to INCREASE the job responsibilities on a number of the personnel and by doing THIS they make other people unnecessary TO the conduct of business !! But, this is to speak in general terms -- because there are thousands of reasons that companies have in shedding employees within such an operation --- sometimes it is done to undo from people who are coming up on retirement (a really LOW BLOW) --- just to rid themselves of the responsibilities of someone coming to added benefits that THEY don't want to pay !! So, hope this sheds SOME light on all this for you !! companies restructure either because they have been sold , or purchased another business and need to merge the two, or if they are not doing well and need to improve how they operate and reduce costs. They look at peoples jobs and try to streamline whats done , so maybe two people can do what thre were doing before. An easy way to reduce costs is to reduce staff. Its hard on people who were doing a good job at work but it happens regularly. Often the people who lose jobs will get a severance package which may be paid training in another job, or several weeks or months pay. |
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