May 06 2005

You’ve Been Downsized

Published by superfunkomatic at May 06, 05 | 6:18 pm under computer geekery, general rants

Interesting to see two corporate giants (Sun Microsystems and IBM) have announced that since they are doing so well financially, and to continue share growth, they are cutting thousands of jobs.

“thanx to you, or employees we’re making records profits. and for your contribution to our company’s good fortune - we’re getting rid of you. thanx again, and good luck to you”

Now we have another common term added to the english lexicon - “restructuring”, meaning layoffs. What will companies do when they have increased share value but no one out there can afford to buy them because we’ve had to take jobs at walmart since no one is willing to pay for skilled labour?

when does the growth for growth’s sake stop? can shareholders still expect to see 10-30% returns on investment for ever? is that a sustainable growth model? i’m thinking, no.

Poor Sun Microsystems

http://news.com.com/Sun+settles+with+Microsoft,+announces+layoffs/2100-1014_3-5183848.html

Poor IBM

http://washtimes.com/upi-breaking/20050504-104058-9808r.htm

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