When interest rates were effectively zero, companies were borrowing and spending without any concern. In good times, the middle management layer tends to grow faster than the productive workers. Easier to hire folks when the criteria are vague. So when conditions turn around, upper management looks to where the greatest proportion of expenses without corresponding profits lie -- cut middle management.
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When interest rates were effectively zero, companies were borrowing and spending without any concern. In good times, the middle management layer tends to grow faster than the productive workers. Easier to hire folks when the criteria are vague. So when conditions turn around, upper management looks to where the greatest proportion of expenses without corresponding profits lie -- cut middle management.