Reduction In Force

Categories: Company Management

Firings. Like from a reality TV show.

It was the best of times, it was the worst of times. Your company has performed horribly, and it needs to cut costs just to pay the interest on the debt it owes, so it must reduce its workforce, and it fires everyone not in a core position. What is “core”? Well, at Ford, the people who make the engines are core. The secretary to the person who lobbies the gov to say nice things about Ford cars...she’s not core. As the man said, “You’re fired.”

Reductions in Force happen when things go awry, and companies must scramble simply to pay the rent. Tough times, but welcome to the NFL. (Shareholders are No Friend to Labor. They just want good investment returns).

Reductions in Force happen for other reasons as well. Think: some natty combination of robots replacing union workers more efficiently, and/or the spread in costs between manufacturing your whoopee cushions in Chicago versus making them in Beijing. Have a big spread in costs? When the robots can do the job better, cheaper, faster than the humans, why wouldn't a company replace the union workers? At some point, some shark manager will ask why we are fighting this difficult fight. "Let’s move production overseas." And when that goes smoothly, the company usually induces a gigantic reduction in force, ending the jobs of some multiple thousand whoopee cushion makers, or WCMs, as they call them in the biz.

Work forces are obviously a heated topic among politicians, as most fired workers generally don’t vote for “more of the same.” Because we live in such a litigious society today, firing any individual worker could lead to an ugly lawsuit for a variety of reasons, as one of them might exist in one form or another as what is called a “protected class.” And those classes comprise subsets of gender, sexual preference, ethnicity, race, age, and myriad other classes, including, yes, mermaids.

So when a giant Reduction in Force happens, and essentially everyone in a group is fired, the risk of these kinds of lawsuits is dramatically mitigated. But it’s sad in any way, shape, or form. RIFs aren’t fun for anyone.

And, well, additionally, everyone really loved Martha the PR secretary, who had been at the company for 27 years, and never forgot a birthday. Unfortunately, the world got rough for Martha, and she had to go, too. At the end of the day, shareholders own the company, and it’s their call as to how they want it run.

There is no crying in baseball…but lots of crying when there’s a RIF.

Related or Semi-related Video

Finance: What is Reduction in Force (RIF...1 Views

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and finance Allah shmoop What is reduction in force or

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riff firings People like from a reality TV show Well

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it was the best of times It was the worst

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of times Your company has performed horribly and it needs

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to cut jobs well just pay the interest on the

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debt it knows so it must reduce its workforce And

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it fires well pretty much everyone not in a core

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position What is core Well at Ford Motors The people

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who make the engines are core the secretary to the

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person who lobbies the Gove to say nice things about

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Ford cars Safety track record Well she's not core although

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we love her But sorry As the man says you're

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fired Reductions in force happened when things go awry and

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companies must scramble simply to pay the rent Yeah tough

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times but you know welcome to the NFL Reductions enforce

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happened for other reasons as well Think some natty combination

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of robots replacing highly paid union workers more efficiently and

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or the spread in cost between manufacturing your whoopee cushions

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in Chicago versus making them in Beijing have a big

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spread in those costs Well when the robots can't do

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the job better cheaper faster than the humans Why wouldn't

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accompany replace the union workers It's way cheaper to hire

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robots a mental complaint or strike At some point some

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shark manager will ask Why are we fighting this difficult

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fight Let's move production overseas And when that goes smoothly

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while the company yeah usually induces a gigantic reduction in

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force ending the domestic jobs of some multiple thousands of

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whoopee cushion makers or W CMEs as they call them

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in the trade Or you know in the biz that's

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what happens Work forces are obviously a heated topic among

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politicians as well Phyllis fired workers generally don't vote for

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more of the same because we live in such a

01:47

litigious society today Well firing any individual worker could lead

01:51

to an ugly lawsuit for a variety of reasons as

01:54

well One of them might exist in one form or

01:56

another of what is called a protected class and those

01:59

classes is comprised subsets of gender sexual preference ethnicity race

02:04

age religion and myriad other classes including yes mermaids So

02:08

when a giant reduction in force happens and essentially everyone

02:11

in the group is fired while the risk of these

02:13

kinds of lawsuits is dramatically mitigated but it's sad in

02:16

any way shape or form Riffs aren't fun for anyone

02:19

and well additionally everyone really loved Martha the PR secretary

02:22

who had been at the company for 27 years and

02:25

never forgot a birthday Unfortunately the world got rough for

02:27

Martha and she had to go to at the end

02:29

of the day shareholders on the company And it's their

02:32

call is toh how they want it run There is

02:34

no crying in baseball but lots of crying when there's

02:37

a riff Sorry we're

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