Layoffs, whats the ultimate cause?

[Spaceinsex]

Im interested in reading up on people's opinions regarding the rate of job layoffs these days. I keep hearing the same old shit over and over regarding the why, but i am unsure if when i hear the response "its the economy", if some people know specifically what that means.

Ultimately is there a one source reason that creates a ripple effect causing businesses to lay off employees?

In other examples i have heard, Banks and the oil industry were the primary reason for the status of america's economic crisis. To specify, i have read and in other instances heard discussions regarding Banks lending to people who in turn are selected for approval because in the end, they will ultimately fail on paying their mortgage. This causes people to foreclose, file for bankruptcy etc etc...

Over the past 3 weeks, people at my job have been laid off, and people all over have followed through out the area of where i live each in their own respective fields.

Is this typical, or does this kind of stuff happen every day, but we are just taking notice? I find it interesting when select people consider their jobs recession proof. It makes me wonder what the definition is for that these days.

In any regard, hard workers lose their jobs every day due to whatever is considered the true cause. Does anyone really know?

[name change request]

uh it's the economy. businesses need to cut costs and so they layoff workers to save on costs.

[Ash]

cut operating costs so small businesses can meet payroll
cut operating costs so large businesses can profit and make shareholders happy

either way someone is gonna get cut

[Adam D]

Sometimes layoffs occur because a company is no longer doing enough business to maintain current production levels/staffing and the layoffs represent cutting back to a staffing level that is sufficient for current needs.

Other times they are done simply as a cost cutting measure; as costs go down, profits go up -- which gives the illusion of driving business forward even though that hasn't happened. This often happens when new management comes into a company and needs to make an impact to make shareholders happy and develop confidence from them.

[Deff Gordon]

i hear women are bad drivers. what's the cause?

[paigesauce]

there are a lot of parts that need to be put together to make the car move you know what im saying? there are also several integral parts to the economy that contribute to layoffs. one cant be sure exactly where the bottleneck is.

[PETA]

Originally Posted by paigesauce

there are a lot of parts that need to be put together to make the car move you know what im saying? there are also several integral parts to the economy that contribute to layoffs. one cant be sure exactly where the bottleneck is.

1) Employer either cannot afford the employees.

or

2) Employer has no need for the employees.

or

3) Employer has no need for the employees at their current cost.

[Spaceinsex]

Originally Posted by Adam D

Sometimes layoffs occur because a company is no longer doing enough business to maintain current production levels/staffing and the layoffs represent cutting back to a staffing level that is sufficient for current needs.

Other times they are done simply as a cost cutting measure; as costs go down, profits go up -- which gives the illusion of driving business forward even though that hasn't happened. This often happens when new management comes into a company and needs to make an impact to make shareholders happy and develop confidence from them.

this makes the most sense to me, but shouldnt most companies know about such cuts in advance and take the necessary steps to prevent them?

[HomoSexualPredator]

srsly?

[green6deepmind]

Bad economic policy. It's a recession that might end up worsening to a great depression. If GM does down, within a year many of us, in jobs not even related to auto, would be out of a job. Most of the comments are spot on. Companies would tighten their belts. As everything recesses, there will be cuts everywhere. The US is basically broke. We live on credit and print more money when we need it.

Originally Posted by HomoQueer

srsly?

[J. Fees]

Originally Posted by Spaceinsex

this makes the most sense to me, but shouldnt most companies know about such cuts in advance and take the necessary steps to prevent them?

no businesses would ever go out of biz. Haven't you ever been overextended and had to cut out cable, or going out, or cell phone. Thats what businesses do.

[J. Fees]

The US is basically broke. We live on credit and print more money when we need

i've always said that credit would be the downfall of the U.S.(or actually i came up with that idea after watching 'fight club', not that you can blow up the buildings like the movie, but that was the first time i thought, 'man what if these credit card bills don't get paid on a national levels with businesses and personal credit? I didn't even figure in house foreclosures at the time)

[david austin]

people in this thread know something?

so confused