The Daily Interview: Doing Layoffs the Right Way

Companies that are slashing costs or laying off people across the board may be making a serious mistake, says Robert G. Atkins, vice president with Mercer Management Consulting.

Robert G. Atkins Vice President, Mercer Management Consulting

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Rather than making wholesale cuts, Atkins believes companies would be smarter to selectively jettison the 5% to 10% of their staff who are the least productive, focusing on the areas of their business that are the least profitable. And -- slackers beware -- Atkins also says companies should know who those least productive workers are at all times.

If companies make these cuts, Atkins says they will have the money to invest in areas in which they can attract the most customers, as well as in technology and capital, thus positioning themselves to rebound strongly from the economic downturn. ...