If labor is a cost for the firm it makes sense to ......

sexta-feira, outubro 04, 2013 David Barradas 0 Comments

From WSJ

Merck & Co. said it plans to slash its 81,000-strong workforce by 20% over the next two years, a stark show of the diminishing research-and-development capabilities of some of America's biggest health companies. 


Well not only the struggling companies fire people, everybody is racing to more with less. If labor is a cost it makes sense to trim it as much as you can. Companies all over the world are replacing workers with machines, outsourcing and doing everything they can to be less dependent on their workers.

I see the power to make money working at a job strongly diminishing. It's easier to make money being an investor than to be an employee!

This story also reflects the fact that Merck has been mediocre inventing new drugs. That has a price and they are paying it big time. The only companies that are still wiring are companies that have something that their clients love. Amazon, Google, etc.... You need to have something for the clients in order to survive.



0 comentários: