fiberguyMy views are my own.Premium
join:2005-05-20
kudos:3 | said by GhostDoggy:$350 Million / 2500 employees = $140,000 per year per employees being pink-slipped. And this is minimally. Wow! Ummmm.. I'm guessing you don't understand business all that well?
They're not laying off $140k employees per-say.. however, you have to remember that each employee comes with their own overhead.. there are benefits that add on to their salary/hourly wage, there are costs to house them, outfit them with tools to do their jobs, support their needs.. etc. If you factor in all those costs, then you could very well average out $140k per employee.
What I'm saying is when you cut an employee, you're not just taking the paycheck itself out of the equation.. you take out the cost to HAVE the employee too. |
 NOCManMacChatterPremium
join:2004-09-30
Colorado Springs, CO | Unless they're laying off their entire engineering and network support.. oh wait.. they did that..
So these are other emloyees in the 50k range probably, how on earth does that come out to 140k.. surely it does not cost another 90k just to employ a single person. The numbers do not add up. |
fiberguyMy views are my own.Premium
join:2005-05-20
kudos:3 | In the end.. it really does... it's more than JUST the cost of the employee itself.. ALL of the other things that employees need to do their jobs, ie: the tools, figures into the costs.
Say they lay off 30% of their phone staff... that's also a 30% reduction in communications costs.. and then those that carry cell phones.. Comcast alone spends upwards to 300 million a year with Verizon for cellular costs and that's only part of it.. they still have a lot of service/systems on Sprint still..
So yes.. ALL of these employee costs also reduce the cost burden on the over head.
Let me give you a number that you will choke on.. Health insurance alone..
Monthly, average out 2500 employees x $430 a month for benefits. That's $1,075,000.00 per month, x 12 months is $12,900,000.00 annually. Figure in costs for workman's comp, and all the other expenses AND estimating $45K a year for employee pay, on a guess average, that's another $112,500.00.
So, between pay and health alone, that's $138 million alone. You start reducing other expenses that are no longer needed to do 2500 employees being gone, and YES.. it DOES add up..
Business isn't "simple math" as you're trying to apply here.. you're figuring in such small numbers.. you don't take into account EVERY dollar spent to operate the business and support the employee you have.. seriously, if you really understood business, and accounting in cost centering, then you'd realize that the savings they are talking are real.
I'm not really gonna try to explain it any further.. just figure in costs for computers, equipment, reduction in support costs, the HR cost reductions from supporting 2500 less employees.. etc etc.. it does add up. |
