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Cost-Cutting Is No Panacea for High-Tech Growth

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Supply Network Guru
Re: Cost cutting is prudent step
mfbertozzi   11/19/2012 3:08:37 AM

@_hm:that's the point, I agree with you in the sense, theorically speaking, there isn't an universal ratio for evaluating "unproductive people", it depends on the market we are speaking about; despite that, I am quite curious to know how many companies (which are evaluating jobs cut) have implemented and are using  "charge back" model for mapping internal productivity/unproductivity.

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Supply Network Guru
Cost cutting is prudent step
_hm   11/17/2012 3:19:11 AM

Cost cutting is generally prudent step. As company grows at rapid pace, many unnecessary, unproductive people get in to organization. This also reduces ratio of technical/engineer to non-technical people. This is not good omen for hi-tech compnay. For hi-tech company hard core engineer to total employee ratio of 75% is indication of its good health and bright future.


The Source
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Re: Great anaylsis
The Source   11/16/2012 2:12:09 PM

Dear Barbara,

I'm glad you agree with me.  Companies competing in this new high-tech environment owe it to themselves, their shareholders and their customers to think about developing innovative products and services that will take their company's revenue to the next level.  I think that we are getting to a tipping point where some companies may not survive the current technology changes.  For sure, cutting operational costs alone is not the answer and should not be seen as a winning formula for poor performing high-tech companies.

Thanks for your comments.




Barbara Jorgensen
User Rank
Great anaylsis
Barbara Jorgensen   11/16/2012 1:47:55 PM

Nicole--this whole blog is spot on. I particularly like your point that Apple, HP and Dell all use Foxconn, but only Apple is thriving in this market. It's clear that it is the OEM's strategy that either succeeds or fails, not the EMS

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