Will Mass Layoffs Help Or Hinder The Struggling Cannabis Industry?
Layoffs are basically a bad decision
Are widespread layoffs in the North American cannabis industry an effective cost-cutting tool – or will they do more damage in an already challenging environment?
Recent mass layoffs in technology, finance and media has prompted some business researchers to argue that widespread job cuts can be counterproductive when it comes to cutting expenses.
“Layoffs often do not cut costs, as there are many instances of laid-off employees being hired back as contractors, with companies paying the contracting firm,” Jeffrey Pfeffer, a Stanford Graduate School of Business professor, told Stanford News in an interview about the massive numbers of layoffs in the technology industry in December.
In his research, Pfeffer has found that tech layoffs also typically fail to:
- Increase stock prices.
- Boost productivity.
- Improve market share.
- Increase revenue.
“Layoffs are basically a bad decision,” Pfeffer said.
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