The impact of cost cutting in business

[Starmix]

Cost cutting can have both positive and negative impacts in business , depending on how it is implemented and the specific circumstances of the company. Regarding the positive impact, cross cutting can directly increase profitability by reducing expenses and improving the bottom-line .This can be crucial; for businesses facing financial challenges or looking to enhance their financial performance. Another is, it can enhance efficiency. By streamlining processes, eliminating redundancies, and optimizing resource allocation, cost cutting can lead to greater efficiency and productivity within the organization.

In relation to its negative impact, it could reduce quality, it is simply because cost cutting can sometimes lead to reduction in equality, particularly if it involves cutting corners on materials, labor, or services can can negatively impact customer satisfaction and brand reputation .It can also affect the employee morale because cost cutting measures , such as layoffs or salary reduction, can negatively impact employee morale and motivation. It can lead to decreased productivity , increased turnover , and a decline in overall employee engagement. .

 

[King Belieal]

If there are ways to cut the costs in business without having to affect quality, it would be fine for the business.

 

[Starmix]

If only on the positive impact, then there is no problem to face by the business owner and most expecially the employees.

 

[Augusta]

Cost cutting potential can be maximized if it used positively. when you streamline processes, eliminate redundancies, and optimizew resource allocation, then you can get the best off it.

 

[Starmix]

It is best if the impact is focused only on positivity because if negativity is included ,the impact is more than deadly.

 

[eLdavis]

Any business that wants to survive, especially in our current economy has to learn how to cut expenses.

 

[Starmix]

Cross cutting is very important in business to improve the bottom line of the business maintain good quality products and enhance good production.

 

[Suba]

There are two terms that are often used by experts in reducing company costs, namely cost cutting and cost reduction. Both have different purposes. Cost cutting is carried out at certain times, especially in difficult economic conditions, so businesses must implement cost cutting such as reducing employee salaries, eliminating employee benefits, etc. While cost reduction is an action to reduce or eliminate costs that are less useful or wasteful, so that cost reduction does not affect the production process and product quality. In general, cost reduction is also carried out periodically.

 

[Kera]

Trying to cut costs in business should not be done with malicious intent to cheat customers but with creativity to offer more value to the customers.

 

[Starmix]

There is no malicious intent in cross-cutting. It happens because of a problem faced by the business or company owner. One is a layoff plan to save the business.

 

[Nomad]

When you are able to cut your cost, you will be able to make more profits from your business. You can reinvest your profits

 

[Augusta]

Cost cutting is very important as it can lead to greater efficiency and productivity within the organization.

 

[Starmix]

This depends on the decision of the company or management upon the results of the inventory and ledger results .If there is a need to cross- cut, then they will not hesitate to do it for the benefits of the company and qualified workers who might be retained.

 

[Suba]

There is no malicious intent in cross-cutting. It happens because of a problem faced by the business or company owner. One is a layoff plan to save the business.

That's right sis, in a very difficult economic condition like during a pandemic, many companies and businesses are forced to close their businesses, and automatically lay off their employees even temporarily in order to cut expenses or fixed costs.

 

[Starmix]

That's right sis, in a very difficult economic condition like during a pandemic, many companies and businesses are forced to close their businesses, and automatically lay off their employees even temporarily in order to cut expenses or fixed costs.

That is right and those on layoffs must also understand and they can come back once the company is sable again. It happened here in my place like in del Monte Philippines. The company was sold to Americans and many were forced to receive their separation pay.