How Can We Cut Our Costs in Tough Times?
AS THOUSANDS of employees at a $17 billion high-tech company called EMC came to work on April 23, 2009, they were expecting the worst. It was the day for the company's quarterly financial announcement for the first quarter of 2009, and everyone knew that things were not going well in the global economy for EMC—or virtually any other large company, for that matter. A global recession was in full flower, and customers weren't buying EMC's products at the rate they had been. Would there be massive layoffs and expense cuts? Would plants or facilities be closed? Some employees would hear directly how bad things were from Joe Tucci, the company's chairman and CEO, in a large auditorium in Hopkinton, Massachusetts. ...