Sunday, April 20, 2008

CEOs, layoffs, self employment, LIFETIMERS.......

This past week, my employer decided to reduce staffing to "improve shareholder value". Although we were told this was inevitable when we went public with our stock, we could never imagine the extent and depth of these reductions in the workforce.  In situations like this, the company always refers to their people as "staff" or "labor"....... Isn't that funny?  We don't just say "people", we refer to them as workforce, labor, or staff.  When the news or media question the reason for the reductions, the company always says it's what's best for the shareholders.  
These are the people that have invested their money in company stock and look and expect a return on their investment. 
This business model is really interesting.  CEOs basically take over companies and have to improve the bottom line.  The quickest and easiest way to do this is reduce expenses or staff. The remaining workforce must perform more work for the same pay.  This improvement in productivity is then "recognized" by the CEO and shareholders and everyone is told what a fine job they're doing.  
Then, months go by, the stock isn't moving like the Board of Directors expects so the CEO announces another round of reductions...... and so the vicious circle continues.  
The share price goes up, the Senior Managers or "shareholders" get richer, more people lose their jobs.  

I don't blame the CEOs for taking advantage of this model and maximizing their compensation. 
I only took this opportunity to once again remind myself how we need to really take actions to insure our own financial independence and freedom.  This decision will probably not include being employed by a company.  Employment really is another way of defining forfeiture of our freedom or destiny.  We let an entity and it's representatives dictate our financial position. 
A major issue with this model is that when the employer or representative is dissatisfied with our work or output, we can be disposed of and replaced.  

Now look at self employment.  If you run your own business, you may upset one or two clients but you're able to rebound and continue if you diversify your customer base.  

Which business model seems to be the wiser choice if one's truly concerned with managing their "lifetime"?  

Let's all get out there and figure out how to generate income in a new business model where we call the shots and control our own destiny.  

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