Bank reports over $11 billion in profits. Will be laying over over 30,000 people...

[HappySqurriel]

richardhutnik said:

HappySqurriel said:
If you're a business in the United States and you constantly hear the rhetoric of increasing business taxes, increasing regulation and introducing cap-n-trade and you are already uncertain about how your company will handle Obamacare and other regulations and emerging business conditions the last thing you're going to do is hire employees unless you're in desperate need for them.

When a business utilizes employees that are salaried, at what point and time will they ever hire new people unless they see themselves in depserate need for them?  See this current situation regarding the bank.  They are making money.  Profits aren't an issue.  They feel there isn't a need for as many employees, despite making a profit, so they let them go, rather than figure out better ways to redeploy them.  Do you think if a business could make a profit without hiring additional employees, they don't do that?

Companies will rarely downsize when they're turning a profit unless they believe the only way to increase profit is to reduce expenses ... because, even if they believe that an individual is not providing a benefit to the company, companies tend to favour growth in revenues to increase profits which (almost always) requires growth in the number of employees.

With a bank, it is entirely likely that they're reducing overhead to build up capital reserves to survive a market shock they're anticipating.