ST Alpha - "I would think in almost every case, the costs incurred from layoffs (severance pay, lost expertise, reduced productivity, low morale, etc...)" (Reading a Post)

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In response to "It's not that outlandish that companies would layoff staff and then rehire once the Obama credits kick in." by Loyola

I would think in almost every case, the costs incurred from layoffs (severance pay, lost expertise, reduced productivity, low morale, etc...)

Posted by znufrii Dec 8 '08, 12:27

far outweigh the marginal gains from any tax write-offs. Plus as was explained last time this came up, these tax laws usually have a clause excluding for the purposes of the credit any hiring for positions that have been eliminated in the last 12 months.

Responses:

but you're right, the way some of the companies are managed it's not outlandish to think that a CEO might be that stupid. -- nm - znufrii Dec 8, 12:27 4
- I would see that line of thought (that of fire now, hire next year) getting traction in the small business community, 0 to 30 workers size companies - Loyola Dec 8, 12:33 2
  - I would think the margins would be even slimmer, and the downside risks much higher for such a business. -- nm - znufrii Dec 8, 12:40 1
    - The point that I have yet to see refuted is, while no one is going to lay people off b/c of a chance at tax credits later... - TFox Dec 8, 12:44
- [deleted]
[deleted] 1
- that still doesn't make it any better... -- nm - znufrii Dec 8, 12:28

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I would think in almost every case, the costs incurred from layoffs (severance pay, lost expertise, reduced productivity, low morale, etc...)

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