Business Case Studies & Business Publications

Profit Maximization and Layoffs

Arce, Daniel G., G...

Case

Profit Maximization and Layoffs

Arce, Daniel G.; Gentile, Mary

OB-1167 | Published February 28, 2010 | 1 pages Case

Collection: Darden School of Business

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This case is part of the Giving Voice to Values (GVV) curriculum. To see other material in the GVV curriculum, please visit http://store.darden.virginia.edu/giving-voice-to-values. Dennis is a member of the management team of a company that, until recently, was extremely profitable. As a result of a continuing recession, however, there has been a significant drop in profits, and the management team is considering layoffs. Dennis will soon be attending a meeting of the management team to decide how many employees to retain. This case examines the tradeoffs between viewing employees as inputs versus assets in the context of a recession. It works well in finance and economics syllabi.