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Jeffrey Pfeffer, a professor at the Stanford Graduate School of Business says that layoffs do not solve what is often the underlying problem. Studies starting in the 1990s have come to similar conclusions as Dr. Pfeffer. LAYOPS can make your remaining employees paranoid, uncreative, risk-averse, overworked and distrustful of management. Some studies have found that layoffs actually had just a small impact on profitability.
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