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Reducing Production Cost In A Recession

As an employer who wants to reduce the production cost during the economic recession, he or she could choose to (1) lay off some workers without changing wages or (2) keep all workers but cut wages for all. Which method would you choose and why?

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I would choose to keep all workers but cut wages for the following reasons:

1.By keeping all workers, you're keeping the knowledge that your employees have acquired over the years they have been working with the company

2.It sends a good message not only to the employees but also to the surrounding community that the company cares about its people and that the company management is ready to go a step further to ensure their employability

3.Keeping employees ensures that the company does not lose them to competitors. Employees know a ...