Avoid The Temptation To Act Too Quickly

There is a temptation to make cuts in payroll before a recovery plan is put in place. This is often done because it demonstrates direct and proactive action on the part of senior leadership. The headcount solution calls for laying off staff as a third and final round of cost cutting. The reason for waiting is that laying off staff before developing a plan may result in cutting the wrong people, demoralizing survivors, and providing for a slow ramp-up time to get back into the market.