Corporate America, Swing Your Ax Wisely

In December, IAC Interactive CEO Barry Diller told the crowd at the Reuters Media Summit, in effect, that if you’re making money, you shouldn’t be laying off huge numbers of employees to please an investor base that’s unlikely to be appeased in any case.Although the temptation is to slash expensive workforce in a downturn, being more prudent might be a business advantage long-term. For talented employees, the prospect of job security is one of the best reasons to join a big, publicly traded company. Take that incentive away, and you give smart, energetic people one more reason to join a startup or branch out on their own.

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