I find that most companies normally fire help too readily, simply because they hire too readily.
My experience, as a co-founder and top executive officer of an international employee-contracting firm, leads me to that conclusion.
Most managers do not leave themselves sufficient flexibility. Poor planning is the culprit in most instances. Though these days, I may give companies in dire straits some slack.
Too much firing and rehiring is expensive in the long run because of wasted know-how, severance costs, training expense, etc.
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