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The Battle To Stay Employed; Why you treat me so bad?

Updated on March 7, 2012

Understanding The Process

Layoffs in the workplace is something that occurs frequently and is caused by lack of demand for the product or service, overspending from within which inhibits profits, and increased costs of overhead materials.

In most companies when the demand exceeds the supply, business is booming and the company is allowed to grow, produce, and create profits. However, when the supply far outweighs the demand, ‘cuts’, as they’re called become the only way a company can stay afloat. With labor, inventory overhead, and payroll usually being the majority of a companies expense on their profit and loss sheets, an employee may find himself on the unemployment line due to a layoff.

Let’s assume for a second that the demand for a service or product is stable. Another factor that affects layoffs is overspending. Upper level management positions are responsible for keeping a steady flow increase of profits in order to maintain the costs of doing business. Occasionally, a bad investment is made which directly puts the company in a financial challenge to recover from the overspending or lack of return on the investment. Rather then attempt to rebound in a gradual time frame, many companies try to eliminate the initial debt by pulling back it’s payroll levels causing many workers to be put on layoff status.

Finally, economic status and inflation also take a toll on companies and this usually is the most apparent reason that layoff or downsizing in companies takes place. Companies come across increased product costs and materials rates going up all the time. They are faced with the decision to either compromise the product and purchase a less expensive substitute which many are reluctant to do in fear of compromising their initial product or accept the increased production costs and in turn, pass that increase to the consumer. The newest trend unfortunatly has also been to move the business overseas where costs are less, killing our jobs as well. This trickle down economic process is rarely successful since once the domino effect filters its way down to the consumer the demand shrinks because consumers are unwilling to pay the increase costs. In a short amount of time the company must draw back it’s expenses in order to compensate for the reduced sales and again layoffs become inevitable to survive.

Maybe we can teach our senior management team or some of these upper level suit and tie folk the value of clipping a coupon in order to save a buck or two eh?

Lack of work reduces the amount of these daily for individuals

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    • KDF profile image
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      KDF 5 years ago from Central Illinois

      Thanks Katrine for the read and follow. You're so right that things have gone from bad to worse. Congrats on your 12 year reign at your current occupation. I have spent 10+ years with companies only to watch them either sell out, or downsize due to costs. Good luck to you and much success. Thanks again for the read.

    • profile image

      KatrineDalMonte 5 years ago

      It somewhat appears that times are getting harder not better, everywhere in the world...things are changing, what once seemed like a piece of cake, these days even postgraduate study will not guarantee you will find a great job. I have been in the same job (wich I love) for past 12 years and although I am aware of the situation out there I have to keep reminding myself how lucky I actually am to have my job that pays for my living and all, especially when I see and read about the increase in unemployment. Your reasons you stated in your articles are very good, I have never actually given it that much thought, and it all does apply across the board in one form or another. What I know from our own company, and this is something that many companies in the UK face is the painful decision of outsourcing some jobs to overseas corporations in order to keep cost low and keep them functioning. This in essence leads to a necessary restructuralization and a new way of doing business. Thanks for this article.

    • KDF profile image
      Author

      KDF 5 years ago from Central Illinois

      I agree the pink umbrella. I've had to change my major just to meet the needs of others. Pretty sad! Thanks for the read!

    • the pink umbrella profile image

      the pink umbrella 5 years ago from the darkened forest deep within me.

      Ugh so hard to get a job in your career field anymore. I feel like the majority of us are just settleing.

    • KDF profile image
      Author

      KDF 5 years ago from Central Illinois

      Where's all my comments? They've disappeared?