When it comes to layoffs, appearances can be deceiving. Many companies are continuing to hire workers even as they let current staffers go. Walt Disney said in March that it was slashing 4,000 positions and freezing hiring for some jobs. At Hewlett-Packard, some marketing jobs have been shed as positions are added in areas such as consulting and sales. In many cases, companies are trying to upgrade their talent.
Research shows such practices are commonplace.
A third of businesses that downsized since 1994 wound up restoring some of the eliminated positions, according to a study by career services firm Lee Hecht Harrison. A down economy has employers cutting back on less-profitable areas and focusing on moneymaking efforts, such as sales or new business development. Copper Mountain Networks, a broadband access equipment provider based in Palo Alto, Calif., recently cut more than 100 workers in operations and is hiring about 35 employees in research and development. Building talent pool. As business becomes more competitive in a downturn, some firms are weeding out lower performers so they can bring in proven talent.