Corporate organizations are always looking for better ways of improving their products as well as their profits. Profit maximization and increased efficiency in most of these organizations are achieved through cost-cutting processes. Layoffs and downsizing have been instrumental in ensuring sustained profit improvements in most of the global organizations (Ton, n.d.). For instance, Virgin Atlantic intends to cut 500 jobs in its strategy to improve efficiency and sustained profits. Despite the company making profits currently, the management has seen it necessary to ensure sustained profitability as its long term objective.
It is, however, paramount for the organization to ensure that cutting of jobs does not have adverse impacts on the sustainability of the organization. Virgin Atlantic must make sure that the organization does not damage the reputation through the improvement strategy. The restructuring process must ensure that customer satisfaction in the organization is not adversely affected. Long-term growth plans must also invest in other areas to enhance uniqueness and customer satisfaction.
Job cut and downsizing have been significantly used of cost saving strategies for the most organizations. It is, however, imperative for organizations top managers to ensure that their decisions do not affect the success of that organization. Securing organizations future is the paramount prerogative and at times it calls for hard decisions. Job cutting strategy at Virgin Atlantic seems to be the roadmap for the organization to sustain its recovery program aimed at realizing the organization’s full potential (Ton, n.d.). The company has ensured that the organization adopts a downsizing strategy that does not affect the organization’s customers. This because the objective of downsizing is to have a simple business structure that addresses customer needs.
Customers’ satisfaction is critical to the organizational success, and thus job cuts must be consumer considerate. Organizations must also ensure that layoffs are in agreement with the law to ensure that organizations do not incur other costs such as re-recruitment and legal charges.
Reference
Ton, Z. (n.d.). The good jobs strategy: How the smartest companies invest in employees to lower costs and boost profits
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