Over the past 30 years, substantially cut costs, has finally come to bad ends enterprises frequent. The most well known to be killers El (Chainsaw Al), which he heads home appliance companies, Finally, to apply for bankruptcy protection ending; In recent years, AT & T, Ford Motor and American Airlines, and other enterprises, Despite fierce cut costs through means that the current share price is still lower than five years ago. Academic research also showed that corporate layoffs may seem harmless or voluntary early retirement program will seriously affect the morale of the staff left behind and productivity. University of Michigan Business School Professor Chameleon (Kim Cameron). a recent Wall Street Journal interview, he had studied the 911 terrorist attacks after the airlines, found a drastic cut costs enterprises, stock prices are often the worst. Clearly, streamline costs did not reach the expected results enterprises, the enterprises from many historical experiences have access to what kind of lessons? The Enterprise Institute one of the lessons is a deceptively simple way could actually traps. 2001-2003, the Proctor & Gamble Corporation for the cost of care to streamline the program, more than 18, 000 employees voluntary retirement. The program currently seems to have been very effective, because the first quarter of this year, P & G's net income increased by 20%. However, the Boston consultancy group warned that such a comprehensive voluntary retirement package, Enterprises may have far-reaching human resources and the long-term impact. Boston consultant pointed out that the voluntary separation program may allow enterprises to lose excellent employees, because people choose to leave the business may be the most valuable asset. In 1994, General Motors will launch a year ago because of the voluntary retirement package, 1:00 to factories between the plight of the shortage. General Motors must pay 21,000 U.S. dollars each to attract retirees returned, the price is heavy. Cut costs need to be strategically thinking, it is enterprises must Acquisition Lesson No. 2. Enterprises should cut costs cut less profitable business, and to get a focus on high-profit cause. Raven Industries (Raven Industries) was originally a diverse commodity production enterprises, The products include a hot air balloon, trucks plastic roof panels, and so on. Face in 2000 during the economic downturn. It adopted a "guard" (China-proof) strategy is the deletion of low margin products, concentrate fire on the higher profits of high-tech agricultural equipment. Despite the absence of more than 700 employees, but its share price rose seven times. Third, communication is the key. Enterprises in a significant reduction in personnel funding, left to face the staff is more difficult issue, left because of staff that the next one might be his morale and productivity, therefore greatly affected. Temperature regulating production equipment Marlow Industries (Marlow Industries) 60% cut in manpower, leaving 5% wage cut after its CEO spare no effort to communicate. He month in the conference room of all staff description of the enterprise's current situation, financial situation, the progress of corporate restructuring. As long as corporate policy has changed, he will explanation that staff fully aware of the state of the business. Even regularly let employees know when they can return to their pay. The ways to help employees and enterprises through troughs. Layoffs and pay cuts may allow enterprises through the crisis, but it may be caused by the impact of the follow-up should not be overlooked.