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Old Oct 25, 17, 11:03 am
  #34  
TheBOSman
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Join Date: Aug 2011
Location: Austin, Texas
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Posts: 25,655
Originally Posted by SvenAge View Post
I assume he's talking about share price movement. Share prices will go down if resource costs are expected to rise.
Best thing in the eyes of shareholders is to cut resources. Share prices rise when cuts are announced, so we need more cuts and less fat.
Basically what I was getting at. Job cuts are often roundly applauded by the folks in those locations (with apologies to the folks posting here who spend a lot of time in those locations, and the handful I met flying BA 1 a while back, my intent was not to put you in a box and do not take offence as the characterisation does not apply to every individual), no matter whether it is actually a smart move to do so or not. Sometimes wage/job cuts are best for business, sometimes they aren't. Some wage/job cuts cut the fat, some cut the bone. But many of the trader types act as though most wage/job cuts are cutting only fat no matter the underlying realities. As noted, there is a major cost involved with recruiting, and then training new employees. There will always be a natural turnover of employees with any business, from BA to M&S to the corner pub, but creating artificial turnover can drive these less visible costs up significantly. Paying people the rates BA is advertising here, considering the cost of living anywhere near London, is unlikely to engender loyalty. BA has clearly decided that these rates make sense for their business model, and that the job market replies favorably enough to these rates. Whether it is shortsighted or not only time will tell.
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