COMPANIES ARE LAYING-OFF THE EMPLOYEES IN THE TWO MONTHS OF LOCK-DOWN WHY??

Why This Happened With Companies Started Few Years Back (Start-Ups) ??

Recessions are difficult periods. Many people suffer economically and worried about the future forecasting plans they did earlier. It impacts all kinds of businesses with large & small due to  tight credit conditions, fear, lower demand, uncertainty etc.

In the recent scenario many companies laid-off the employees for cost cutting for being financially stable. 

In the two months of lock-down period many companies did cost cutting, who are top in the marketing list of their products and services. What do you think ? 

Possible ways, how these companies entered in this worst situation:

1.Basically new start-ups running on someone else's money.

2.Over-leveraged- A business said to be over-leveraged when it carries a too much debt compared to its operating cash flows.

3.Unnecessary Innovations ( Required when company will reach at set level )

4.Mainly Growth Hackers - 

                               Some of the Start-ups wondering that growth can be hacked easily. They try to implement shortcuts & find a few loopholes to grow business by  weeks or months rather than years. But,unfortunately the things they are doing are not possible and unhealthy in the long run.

5.Hiring wrong employees.

6.Marginal Niche- It signifies choosing a small, obscure niche in the hope of avoiding competition.

7.Poor Investment management.

But, As Compared to other companies who aren't laying-off the employees  who have-

• Strong Fundamentals
• Basics are right
• Hardship of many years
• Consumer Confidence

 And they serve more better to being a positive example in the world.

• Fundamentally strong companies focuses on efforts where they can add value to the world.
• Mainly, these companies focuses on delivering an exceptional value & hence their employee and customer loyalty help them to reach at new heights.

You can comment your suggestions, I welcome your suggestions.