Now as many as 10,000 SAP jobs to be hit by restructure SAP has expanded the number of jobs affected by its restructuring program by up to 20 percent after generating higher revenue but lower operating profit in the most recent full quarter. In January, the ERP and enterprise software biz said the restructure was likely to impact 8,000 positions worldwide. However, the European …
That is the go-to excuse for companies who are not making enough money to satisfy the shareholders.
It doesn't matter that they're making money hand-over-fist and can largely afford the salary charge. No, what matters is that shareholders, who do nothing at all but sit with their mouths open like chick in a nest waiting for food distribution, what matters is that those freeloaders get their share.
Capitalisme needs a rethink.
I think the real problem isn't the shareholders but analysts who come up with short-term "expectations" (i.e. invent arbitrary targets) or require businesses to establish their own targets and then cause the share price to soar or plummet wildly depending on how the results match the target.
The best thing to do would be to take some of the analysts' toys away. Forbid the publication, except for emergency situations, of results at less than annual intervals. Require businesses to set turnover targets for a couple of years or more ahead. That would encourage longer term thinking and discourage cutting costs to maintain profits in the short term at the expense of long term viability.
I couldn't agree more. Also, the expectation of exponential growth is killing choice, variety and innovation. Apart from its impossibility, companies are disappearing even though they do good stuff and make steady profits because the only way to satisfy the expectation of ever-increasing profits is to be bought out.
Exactly the reason why Walmart have pissed $20bn+ on never made a profit in their entire existence Flipkart - in India … yet sold steady £1bn profits a year Asda* in the UK.
*Asda also introduced George into Walmart. as well as additional economies of scale in many areas.
Of course shareholders are the culprits. They want more and more dividends, even if it means slowly destroying the company. They only think at a short term view. When they will have extract all the money they can get, they'll move to a new company to do the same destructive work.
A company who makes profits should get a penalty for every worker made redundant.
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