# p-trade: job cuts vs long-term firm implications

<< Barclays, Pearson and Virgin Media have all announced significant job cuts as part of a growing pressure to cut costs, adding up to more than 6,000 job cuts in total. Firms are increasingly turning to cost-reduction strategies as a coping mechanism for competitive and difficult economic conditions. But while these strategies help to reduce costs in the short-term, these cuts can have much bigger, and fundamentally important implications for the identity of the firm and their long-term competitiveness >>

Shelley Harrington. Job cuts save money but can hurt business in the long-run. January 22, 2016 4.55pm GMT

https://theconversation.com/job-cuts-save-money-but-can-hurt-business-in-the-long-run-53581

<< In today’s business environment, employee downsizing is a widespread strategy aimed at improving firm performance and competitiveness. The literature, however, highlights unequivocal findings that many downsizing initiatives fail to retain critical skills, capabilities, experience and knowledge. Employee downsizing may therefore lead to deteriorating quality, productivity and effectiveness >>

Achim Schmitt, Stefano Borzillo, Gilbert Probst. Don’t let knowledge walk away: Knowledge retention during employee downsizing. Management Learning, February 2012 vol. 43 no. 1 53-74 doi: 10.1177/1350507611411630

http://m.mlq.sagepub.com/content/43/1/53.abstract