Layoffs-think before you act
During these times of the recession, most management start cost cutting by laying off employees. This may be a mistake, depending on the knowledge level needed for your product or service. Consider lowering payroll costs through eliminating or deferring bonuses, salary annual increases, reducing contract labor, reducing salaries across the board (management first, then other employees); if you have to let permanent employees go, consider restructuring the organization, eliminating management first, flatten the organization and reallocate employees to other areas of the company and establish a mentoring program to support those taking on new responsibilities. A JOB AT A LOWER SALARY IS USUALLY LOOKED UPON AS BETTER THAN NO JOB AT ALL.
The recession is short lived in comparison to the damage that management can do if they do not handle the down turn correctly