If you look at the net income and net profit margin, they shrunk heavily last quarter. I guess it's not a good idea to cut 5k positions to pay dividends to the investors. AND Fat bonus checks to top executives.
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While cutting jobs may improve the net income, it also can impact the quality of the work which can result in less profit down the road.
It's clear they've already been struggling with their Medicare star rating... do they want to loose another star?
Employees that are treated well usually end up doing a good job. Employees treated poorly, or who are constantly fearing for their job will never do as good work as someone who is happy to work there.
The best place to start making cuts for the biggest return: all the bonuses the CEO and VP's get. How many VP's does a company need anyway? It seems like they have a new one every week.
But that will never happen. Instead, they will all probably get large bonuses for all their "cost saving" ideas when all this is over.
Dividends doesn’t effect net income or profit margin… those are paid from the profits.
Too much cost would mean lower net income and lower profit margin… that’s exactly why they are trying to slash costs.
Net income = revenues - cost
Profit margin = (revenue-cost) / cost
Cutting jobs would boost both.