Kiss My Shaz
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probably to save on benefits, vacation time, pensions,and all the other things that start fresh with a new employee. |
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Muga Wa Kabbz
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Wages are a fixed business expense. Sometimes companies lay off workers to reduce the cost of doing business. Afterwards, they hire new workers to replace the laid off workers, so that they can pay the new workers lesser money for doing the same job the laid off workers were doing. |
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Opinionatedkitten
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Usually, to get rid of expensive union contracts. The longer an employee is there, the more they cost. Also, they can sometimes re-hire new employees under new contracts, without health benefits or pension plans, for example.
Sometimes, simply to get the right numbers for the end of a quarter and justify executive bonuses. |
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AskHereFirst
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Quite often it can be related to labor contracts or the salaries of workers that have been around a while. At the end of the day all of these actions are related to cost savings. |
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007
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So they can pay the new workers less. Anything to save a buck. Greed, Greed, Greed. |
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dolphinchick
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Legally they can not hire new employees to replace them. It's typically other organizations or business unit's within the company or they hire contractors. |
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Eric P
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There are two reasons
1) Just to shake things up to hopefully get a stock price boost
2) Get rid of poor performing employees
And for the record, this likely costs more money as the cost of getting new employees (recruiting, relocation, travel, training, etc.) is more than retaining old employees. |
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atcranes
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In short it's economics. If you were a long time employee, say 10+ years, then you make more than a person would be making if they just hired on. True? And if you are a person who cannot stand to be without a job (IE. laid off) then you will have gotten a job somewhere else, when they called you back. Right? Granted it's more than this, but in simple this is it in a nut shell. You move on and they have someone working for them making less than you did doing the same job. |
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ILOVELUCYFAN
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Usually it is because they can hire a new employee for a lot less than an employee who has been with the company longer and has received raises. Dirty but true! |
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InterNite
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Maybe the people they laid off were not high performers. |
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smiling_freds_biz_info
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Why do people do anything? Maybe the old crew are dead-in-the-water and the only way to revitalize things to move forward is to get new blood with great attitudes, for example. |
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Liberals Suck
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Because CEOs are chickenshits. |
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