Layoff Incentives

Topics: Layoff, Termination of employment, Retailing Pages: 3 (1092 words) Published: April 22, 2013
The Layoff
The recent recession has brought about various major concerns amongst the most well off corporations in the United States. In the case of Astrigo, they missed their earnings estimate by 20 cents a share. Even with all the dropped expenses and inventory, Astrigo’s profits dropped by double digits. Astrigo, in which prides itself in having the best customer service in the retail industry, was losing sales to cheap retail stores with less than respectable customer service. Customer expectations were declining along with the recession. This is a symptom to a major problem with many quality companies due to the tough economy. Astrigo had to figure out the best solution to maintain their reputation and outlook to their stakeholders before they took a huge hit on the market. Robin Astrigo, along with keeping his ethical beliefs in treating his employees well, had a harsh decision make in order to keep the company afloat. This is a huge concern for Astrigo. His choices come down to lowering his internal costs, such as his employees to cut costs in an effort to raise his company’s profits to its estimated values. He appointed a team with his most trusted employee leaders, the executive board.

These issues definitely came unannounced to every industry. Due to the competitiveness of the retail market, many companies were in a price battle to see who can go the lowest. This was not as much the case for Astrigo, in which stressed the quality of their product. They decided to stick to their guns and rely on their strong reputation for great customer service. Obviously, customer service only goes so far in any merchandise industry and the majority of customers are going to try and save the most money during a recessed economy. The blunt of the low revenue report is going to fall on the company, in which its employees become affected most on a personal level when it comes to their jobs. The employees get nervous for possible layoffs and their performance may...
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