Thursday, July 20, 2006

Fire that man!

It's happened again. I've read it yet again. And yet again it angers me, or rather saddens me. Intel's profits are down this quarter to a mere 885 million dollars. And of course the company is as such firing people and re-organising. One company of many who are firing common people based on massive profits that just weren't massive enough. I've even at times read about companies who start to downsize not because of their profits going down, in fact their profits rose above previous profits. But because the expected rise in profits was lower then... expected.

I understand the fact that a company needs to act pre-emptive before they go into the red number. But I don't think this is the case usually. We are talking about very healthy companies that sometimes make a little less profit, or who's profits rose a little less then expected. Which I believe is quite normal, markets fluctuate and you can't endlessly expand and grow and grow. Making a huge 885 million dollars profit I think is something most companies only dream about. And it keeps the boat afloat for sure.

What also bothers me is how financial agencies report about this. Using negative terms like that Intel is in trouble or in stormy weather. Excuse me? They are making a huge profit! Sometimes I do think the economy has become a multi-headed beast that we sacrifice everything too. I think a healthy, free-market economy is one of the most important things there is. But the economy should serve the people, not people the economy. Human beings, us, we are the most important thing on this planet for ourselves as a race. Not the economy, it's the well-being of us as a human race that matters more. We need to use the economy to service us there, not be serviced up as a human race to a non living, created mechanism.

I also strongly believe that all this downsizing only works on the short-term. Fire some people, see profits go up. On the long term see customers disappear because you can't service them correctly anymore, see your best staff leave because they are unhappy, see everything decline. Al through not fully related a recent study by DolmatConnel & Partners also showed the IT top-managers who make the most money are achieving the worst. Their companies are doing the worst of all IT companies. Of course what the correlation and relation between the two is, is unknown at the time. But it does make you wonder a bit. To many companies focus on short-term profits to keep stockholders happy, sacrificing long-term survivability even. Let alone making the world as a whole better by providing quality to their customers.

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