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Arvind’s Newsletter
Issue #663
1.Air India show intent : places order for 500 jets from Airbus and Boeing.
Air India has sealed a jumbo deal for about 500 new planes worth more than $100 billion at list prices, in what could become the single largest order by any airline as it seeks to reinvent itself under its new owners, industry sources told Reuters.
The deal, split equally between France’s Airbus and rival planemaker Boeing, was first reported by Reuters in December and could finally be announced as early as next week, the sources said.
2.Layoffs do-not cut costs they hurt profitability. The past few months have seen brutal downsizings in heretofore relatively immune sectors. Far from being essential for survival or even improving financial performance, several of these seem imitative parrot plays. Jeffrey Pfeffer, of the Stanford Graduate School of Business, captures it well. "Layoffs probably don’t cut costs… in fact, there is little empirical evidence that layoffs help improve profitability, and some evidence they actually hurt profitability."
As bad as the actual pain caused to thousands of employees and their families, is the tension and demoralization of those who remain. 2 Next ,come the ripple effects of other firms following the examples of emplocide set by these generally model employers.