Question

You are the president of high performing division and the Chief Executive Officer tells you in order increase the profits by another $260M over forecast; you need to layoffs 9 people. And also by doing this you will be promoted with 26k salary increase and stock option and also the analyst say the stock would go up in time to cash in our stock options. What you will do? Explain the pros and cons of your actions for a. yourself, b. employees, and c. shareholders.

Write (typed) a 2-3 good paragraphs about it and it should be in favor of layoffs. Thank you

Answer 1

Being a president of a high performing division cannot be an easy job. it comes with making alot of tough decision which ensure that not only the division continues to be high performing but all its high performance in turn helps the company and its shareholders in the long run.

The most obvious and clear opportunity here after following the advise given by the Chief Executive Officer to lay off 9 people would result in an additional profit of $260M over the forecast. this would not only benefit me as an employee of the company but also the company as a whole, its stakeholders and my fellow employees.

the most certain benefit for me here would be the hike in my salary by $26,000 and the chance to own stock options which would go up in time as per the analyst. apart from this the port would that the division managed by me would continue to be a high performing divisonand this time have a substantial contribution to the profits of the company. this additional profits of $260M over the forecast would benefit the shareholders thereby increasing mine as well as others holding value of the company. the valuation of the company would increase so would it name in the market both of which are extremely beneficial form the company's shareholders.

the only con here would be for the 9 employees that need to be laid off to meet these profits numbers. the justification for this would that a profit of $260M would be possibly earned just by them being laid off; it can be safe to assume that their contribution towards the division and in turn the company was not enough for them to reach and get these kind of profits. it can also be guessed that their performance in the division in question of sub optimal and not contributing towards the high performance of the division. hence there shouldn't be any hesitation to lay off these 9 people.