Detroit News: "20 jobs cut by Internet's ePrize"
"The company, which has 350 employees, has seen its sales increase 30 percent over the past year, Linkner said, but he hopes the cuts will fend off problems so the company can remain competitive."
- Sales are increasing 30% and you have too much talent?
- How did so many extra people get hired?
- What new technology has increased firm productivity enough to cope with such rapid growth and make the current labor force redundant?
"Many of ePrize's clients -- from the automakers to financial services companies to retailers -- are seeing profits dwindle or disappear, leaving fewer dollars to invest in advertising."
- The firms that hire ePrize are cutting spending?
- How is the firm growing at 30% in the throws of a recession?
- Fewer dollars for advertising and promotions?
"The laid-off workers received a severance package, though the company wouldn't disclose details. There are no plans for more layoffs, Linkner said."
- Severance packages are good for the people let go. These are smart and talented folks.
- No firm ever plans for more layoffs down the road. Cut once and cut deep. It seems that ePrize had a major RIF [Reduction in Force] last Summer.
- Two rounds of job cuts in less than one year is a signal of concern
There are no easy answers
In the past several weeks there was elevated traffic for search terms such as "eprize layoff". The increase was so dramatic, it indicated that the word on the street was that something was happening. Sure enough, the Detroit News reported ePrize layoffs in today's online edition.
Michigan Economic Conditions
Michigan is facing some very turbulent economic conditions. In October the Michigan unemployment rate was reported as 9.3 percent, seasonally adjusted, tied with Rhode Island for worst in the nation. The automotive sector, which makes up a large segment of the Michigan economy is likely to continue deteriorating.
Your constructive comments and criticisms are welcome
What say you?