A Wren Says

When it comes time to cut costs, what companies often do is cut ties with humans. Labor is their highest cost, after all. That makes it a no-brainer to start there. I think the issue is that these same brands are failing to realize something else that humans do. They make you money.

Your products likely don’t sell themselves. Well, unless of course you’re the scammy drop-shippers I keep getting ads for. If you maintain a retail space, it is group of humans who are maintaining it. Those humans are responsible for restocking your shelves, answering customer questions, and ringing them up at the register. Fewer humans in the store means less of that happening. Fewer humans means poorer in-store experiences. And as you might imagine, having a bad in-store experience could lead to lower sales.

While it is tempting to try to save money by doing a round of layoffs, it may lead to additional problems you didn’t see coming. Reducing your sales force could also reduce your sales. If you are looking to reduce your workforce to save money, make sure it doesn’t lose you money in the end.