It is better to layoff expensive people who sits around than 10 cheap people who sits around. Basically everyone is sitting around nowadays except the stupid few who thinks what they do is going to make a difference. Whole year do nothing but one thing significant is better than do a lot but not one reach VPs entertainment value.
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Nepotism? Are managers hiring their relatives?
If it is better to lay off expensive people than I would say lay off all the mangers.... they not only eat the bigger pie of the pay but also pollute the workplace for survival with nasty politics, nepotism, unethical practices. Engineers are at least solving problem day-in and day-out big or small. What do the managers do? Lecturing around?? Working like a clerk by sending emails from one side to the other side and shifting the problem from one plate to the other??? Who the hell on earth wants to employ and hire them...? Don't think you being a manager will rule... your days are numbered too. Engineers will arrange something for them...but you all gonna be on road and howling !
Don’t worry about doing nothing for a year, at NDC qa it 5 years of doing nothing. And Cyclone QA has more people then a mid size company in America :-)