Question

You are the president of high performing division and the Chief Executive Officer tells you in order increase the profits by another $260M over forecast; you need to layoffs 9 people. And also by doing this you will be promoted with 26k salary increase and stock option and also the analyst say the stock would go up in time to cash in our stock options. What you will do? Explain the pros and cons of your actions for a. yourself, b. employees, and c. shareholders.

Write (typed) a 2-3 good paragraphs about it and it should be in favor of layoffs. Thank you

Answer 1

Background:

I am the president of high performing division and our Chief Executive Officer tells us that in order to increase the profits by another $260M over forecast; we need to layoffs 9 people. And also by doing this I will be promoted with 26k salary increase and stock option and also the analyst say the stock would go up in time to cash in our stock options.

I will do layoff for 9 people as per the plan of the Chief Executive in order to make the plant in profit.

A - Myself:

Pros: The pros for me will be as below

• I will get promotion with 26K salary, which will be motivation for me.
• I will get additional stock to purchase which will increase my wealth for future in the company.
• I will have good moral support from Chief Executive of the company.

Cons:

• I will not have good support from people/ employees.
• The layoff will have adverse impact on my image.

B- For Employees:

Pros: Following will be the pros for the employees as below

• Employees will get half salary as well as holidays
• Employees will get god time to spend with their families.
• Employees can explore for their other career options/aspirations during this time.

Cons: Following will be the cons for the employees due to the layoffs as below

• Employees will be in depression /in low moral due to layoffs.
• Employee will be in tension due to future job survival

C – Shareholders:

Pros: Following will be the pros for the shareholders as below

• Shareholder will get higher dividends for their investments.
• Shareholders will be happy to see the company in profitable stage.
• Shareholders will have more confidence in chief executives.

Cons: Following will be the cons for shareholders as below

• The organization is not on the growth path, so they may be worry for long term point of view.
• Layoff may be a point of negativity for the organization.
• Shareholders will have low share