Posts Tagged ‘layoffs’

What to Do When Your Business Model Depends Entirely on Google’s Search Results

Wednesday, March 9th, 2011

“In a recent e-mail to employees, company founder and CEO Jason Calacanis and Mahalo President Jason Rapp said the start-up trimmed a tenth of its workforce due to a reduction in traffic caused by Google’s change to its search algorithm, according to the blog CenterNetworks.

The Google changes were meant to push down low-quality sites in search results, but some unexpected websites such as Mahalo lost their ranking as well, the report said. With less traffic visiting Mahalo, revenue took a hit, the e-mail said, according to CenterNetworks.”

What do you think?

How can online businesses protect themselves against rapid changes in the technology industry? Does this news make you think twice about investing in web-based companies?

“Last In, First Out” Rule Could Make Some Schools Nearly Teacherless!

Thursday, March 3rd, 2011

“Some of New York City’s 1,600 schools would lose more than half their teachers while others would lose none under Mayor Michael Bloomberg’s plan to lay off 4,600 teachers if the last-in, first-out policy is not changed.

…

Under the last-in, first-out policy, schools that are new, have grown heavily in recent years or are situated in high-poverty neighborhoods would be hit the hardest. Columbia Secondary School on West 123rd Street would lose 14 of its 20 teachers, or 70%.”

What do you think?

How would you handle teacher layoffs? Is there any way to balance the city budget without cutting public school jobs?

Mass Layoffs Fund Raises For Sketchy CEOs

Thursday, September 2nd, 2010

Tough love, or “tough luck – bwahahahaha”?

  • A study by the Institute for Policy Studies, a Washington think tank, shows that in the 50 companies that laid off the most workers around 2009, CEOs tended to make more money than CEOs of other companies.
  • The companies analyzed were diverse in terms of their health in the wake of the recession. Some were doing fine while others were struggling. But all showed the same trend toward higher CEO pay.
  • Most of these companies were actually laying off workers during a time of increased profit. Layoffs are usually a short-term solution that companies use to increase profits and stay afloat.

Facts & Figures

  • CEOs of high-layoff companies were paid an average of 42% more than their peers – about $12 million
  • Of the 50 companies studied, average CEO pay rose by 7% in 2009
  • Average pay for CEOs in the Fortune 500 decreased 11% in the same period

Best Quote

“We are trying to encourage people to think long-term, that there are all kinds of costs to mass layoffs, in terms of morale problems with remaining workers, in terms of when you may have to rehire and train workers if conditions improve. It was more a way to boost their profits in the short terms and line the pockets of their CEOs.” – Sarah Anderson, study author and Global Economy Project Director at Institute for Policy Studies

Businesses Hesitate To Hire, Stall Economic Recovery

Tuesday, July 6th, 2010

Concerns about the stalled U.S. economic recovery continue to grow.

  • Last week, state unemployment aid claims increased unexpectedly, which may indicate that the economic recovery is stalling.
  • Although the number of layoffs has decreased in the past year, businesses are hesitant to hire.
  • New jobless claims rose to the highest level since the beginning of March.
  • Obama’s approval ratings have plummeted due to concerns about the economic recovery.

Facts and Figures

  • Claims for state unemployment benefits rose 13,000 last month.
  • Employers announced 39,358 job cuts in June, up 1.4% from May.
  • Private employers added just 13,000 jobs in May.
  • Announced layoffs hit a 4-year low in April.

Best Quote

“It’s looking more and more like the job market is treading water. Layoffs are down from 2009, but hiring hasn’t really picked up and this is disappointing. There is a lot of uncertainty on the hiring side that’s causing things to remain sluggish. In order for the recovery to give people confidence it needs to cut across different sectors of the economy.” – Stephen Bronars, Senior Economist at Welch Consulting

Moral Cleanup Or Reckless Crackdown?

Wednesday, July 1st, 2009

Here’s an interesting topic for debate: how should anti-vice programs be carried out? Below is the Russian government’s solution to the problem, but it’s a very controversial one.

  • In accordance with Prime Minister Putin’s anti-vice plan, the Russian government is closing every casino and slot-machine parlor in the country. This move will result in the loss of hundreds of thousands of jobs.
  • Casinos’ only option will be to relocate to one of four remote, backwoods areas of the country. However, none of these regions are prepared for such a move, and it is expected to take at least several years before a casino will be able to reopen there.
  • The gambling industry has proposed the creation of a regulatory body to keep the casinos clean and safe, but the government has refused to compromise.

Facts & Figures

  • The World Bank estimates that the Russian economy will decline by 7.9% in 2009.
  • According to the gambling industry, 400,000 workers will be thrown out of work as a result of the ban.
  • The gambling industry pays an estimated $1 billion in taxes annually.

Best Quote

“The authorities are taking this step without thinking at all. They have not considered what this decision means for the workers. With the crisis, it is going to be very difficult for us.” – Irina Mysachka, Supervisor at Moscow’s Shangri-La Casino