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me
What does it mean when a company lays off managers and Vice Presidents? ?
Would that mean the company is going to go under? Or are they just cutting away the dollars they spend?
Additional Details
And is 10% alot for a company to lay off? You guys have me really worried.
                     
 




David Z
Rating
It means someone is making some cost reduction decisions for the long term betterment of the company.

It likely means your company is experiencing declining earnings but it does not mean they are going under. Good senior management teams react to problems way before they become a crisis.

10% is a lot yes.

If you can pay attention to if your accounts payable department is paying vendors on time. I know that is hard if you are not in that department. But one sign to look for is are your vendors cutting your company off and not shipping you product because you have unpaid invoices. That is a bad sign. This happens occassionally due to administrative screw ups but if this is a repeated problem then you can bet your company has a cash flow problem.

Another sign of trouble is if vendors do not provide you credit but insist upon prepaid orders or COD. That is also an indication of cash flow problems.


Spec Tac
Rating
Hard to interpret. I know how stressful it can be though - I am going through the same thing at my company and we wonder what it means for the rest of us.

Many times, top employees such as VPs and CEOs, etc, are fired, and their spots refilled - as a sign to the public that they are trying to make change and improvements to their managment.


Chris M
It's a very big sign they are about to go under.


givingvoice2003
It means they're trimming useless fat!


Texperson
It's not a good sign. But if they are shrinking the whole organization, then people at the top need to go too. If they continue to lay people off, month after month, then it's really bad. If things calm down and no new layoffs occur for a while, maybe they will survive.


Daniel C
They're cutting costs where it makes the most difference. It doesn't make sense to layoff the people at the bottom since they're the ones doing the work that brings in the money.


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