Saturday, May 3, 2008

Sun, the stock market lottery, and the road ahead

Seeing the recent stock market disaster, I wonder if it makes sense to hire capable managers, when your company is hostage of the stockholders mob.
The news delivered by Sun did not seem that bad, except for the USA salesforce. Sun is growing everywhere else in the world, and a slow US economy has punished the whole company out of proportion. The reaction from the crowd is really unbelievable.
On a related matter, Sun has announced the layoff of 2500 people. What does it mean? Sun's strategy is based on growth, or so they say. How can they grow if they start firing people?

1 comment:

Sheeri K. Cabral said...

I think it makes sense to hire capable managers, especially ones that understand when an angry mob is irrational. After all, if it were up to the mass of people we'd never pay the detriment of society, sadly.

As for the "how can they grow if they start firing people?" You tell me -- can you grow your savings account if you don't "fire" eating out 3 times a week? In order to have a more stable future, sometimes cutbacks are the answer.

2,500 people will lose their job, but 27,500 will keep theirs.