Balance Sheet Booster Shot: Curing Rising EB Costs Executives looking to solve balance sheet problems often begin the process by cutting employee headcount for immediate cost savings. These layoffs seem like the answer because they eliminate salaries, the largest item on the expense sheet. They also whittle down the enormous costs of providing full-time employee benefits such as health care, dental, vision and pension.
Layoffs, however, can have a significant negative effect, from the ability to research, develop, market and sell products, to more abstract effects such as employee morale and productivity.
Ultimately they affect Wall Streets perception of your companys future potentialyou risk alienating the very populations youre hoping to appease.
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