fiberguyMy views are my own.Premium
join:2005-05-20
kudos:3 | Oh I agree that Video over DSL is like trying to feel a neighborhood's water supply through a 1" pvc pipe. It's just not going to happen.
However, you are relating the 10,000 layoffs as not a "positive sign" why? Because people are loosing their jobs? Layoffs in the corporate world are common when cash is needed. Sometimes you have to reduce your workforce in order to move forward and grow. Those jobs, though cut now, will eventually come back. What you often do hear about too is that many of the 10,000 layoffs will come from attrition from people leaving anyway, or offering of early rtirements.
If these 10,000 jobs were $22,000 a year earners (lets assume) the cost savings in payrole alone is 220 million a year. That doesn't count the cost for benefits, taxes and other costs associated with employing someone. It's a considerable amount of cash. (And this is on the low end)
Another thing you may not be looking at is that investors LOVE to see reductions in payrole expenses. This also stirs cash flow too.
This, in my opinion, is a VERY positve move by the company. Many industry and money people, I am sure, would agree. Just look at any major company that is about to sell itself. You will ALWAYS see them let people go in order to make the numbers look better in order to attract a better price. |
