MIT Business School Researcher Troubled by UTC Layoff Trends

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Andrew McAfee, a principal research scientist at the MIT Sloan School of Management, is troubled by the fact that United Technologies Corp. doesn’t just cut workers when profits are slipping and sales are flat, but also when sales are booming, profits are climbing.

He writes: “It feels new to me that a successful company would shrink its workforce as it grows its sales, profits, and stock price.”

Is it? Haven’t UTC leaders talked about the need to cut labor costs in order to boost profits at its divisions for years?

Read his thoughts at Harvard Business Review, and offer your own in the comments below.



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