Cisco Systems Inc’s August announcement of its plans to lay off 5,500 employees (or roughly 7% of its workforce) alarmed the tech industry recently. That uncertainty have players facing the harsh reality that this is likely only just the beginning of what is sure to be Silicon Valley pink slips for hardware companies struggling to keep up with rapid shifts in technology.
With major companies like Cisco, Hewlett Packard, and even Intel cutting jobs and restructuring their existing workforce as a result of the consumer move to cloud-computing continues, it begs the question — how will all of this affect consumers and businesses looking for solutions and service from these companies.
Say goodbye to good service
One thing is certain—layoffs negatively impact the morale of those employees left behind, compounded by the fact that less people at a company often means more work and higher demands for those that remain. This has the cumulative residual effect of impacting the level of service and support received by the consumer.
According to Wharton (the school of business at the University of Pennsylvania), “In many industries, layoffs beget lower productivity and profits. When sales are slow, for instance, many retailers cut staff. But several studies show a correlation between bigger staffing and substantially higher sales.”
Wharton management professor Adam Cobb says, “Layoffs may look good on paper because they have an immediate effect on costs. Yet in reality there are a lot of costs that layoffs impose on firms.”
All of this means that customers of Cisco and other downsizers will likely see a tragic dip in service and support for their needs. But what’s a consumer to do?
Smaller companies pick up the slack
When manufacturer’s downsize, there is a trickle down effect. Large distributors and resellers can suffer the most given their tight relationships with companies such as Cisco. Consumers can choose either to take it on the chin or see it as an opportunity to shop around. The truth is, the big guys aren’t always even the best deal, companies like Summit Information Resources offer the same products with a bonus level of personal service that is simply unmatched.
How does your hardware partner stack up?
Does your hardware partner offer you the very best in experience, gear, and most importantly service for your needs? If not, take a look at Summit Information Resources, we’ve been out pacing the competition in the hardware market for years, and we know what it takes to keep clients happy by providing a level of expertise and service that we believe is consistently unparalleled.