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E. I. du Pont de Nemours and Company Message Board

  • hd_lowrider_stormy hd_lowrider_stormy May 21, 2009 9:08 AM Flag

    For Dupont, pink slips are the easy way out

    For Dupont, pink slips are the easy way out. It's much easier and quicker to cut the headcount than to tackle other more entrenched efficiency problems.

    This is the vicious cycle that we are in. Companies cut jobs to save themselves, hurting the overall economy -- and ultimately themselves -- in the process. All the unemployed folks stop spending, causing other companies to scale back investments and slowing the economy further. It trickles down from big companies to their suppliers. It moves horizontally across the economy from consumer-focused companies to wholesalers to manufacturers.

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    • Retired I'll let you in on a secret. Most high flyers like Chad and Ellen get stock awards and stock options. Options are always priced to win. Grants are free cash in the bank as long as the executive stays for a certain number of years. Unless the company goes BK people like Chad and Ellen will always win. We need them to direct the company stragedy years into the future. Not just the next QTR. Look around the DOW 30 and you'll agree that Dupont is under paying big time. Our bosses are doing this out of loyalty to EI Dupont.

    • Chad went from earning 10+ million per yaer to taking only 750 K That is a sacrifice when he could have stayed on as CEO for 2-3 more years and paid Ellen for one job. Now Ellen has two jobs and only one pay check. Chad is working for charity wages compared to every one else.

    • It hurts DD. Businesses that DD determines are "marginal" get cut, becomes self fulfilling as effort decreases, resulting in poorer performance, so you get rid of more people....And the beat goes on. Early on, and I mean 20 years ago, you could have argued that DD was getting rid of unneeded fat (there used to be elevator operators in the Wilmington buildings, for example). At some point, you cut muscle and it hurts the business. Before you decide to under resource a business, you should just sell it as it will fetch more than after it is ruined by downsizing. Thats where I see DD legacy businesses today....retired

      • 1 Reply to ddretired94
      • you are right on but DD has a long and deserved reputation of selling profitable businesses while destroying businesses it keeps. continued cuts in contract workers and wageroll employees does more damage to a business than the money saved does good for the business. Just sell the busineses that you don't want and let someone else make a profitable business from them. I do beleive that DD is over loaded with fat cats at the top and that is usually the case when low level personnel are fired.

 
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