Oh, sure it does. There’s morons everywhere. But it doesn’t last long before going belly up. Look, I know small business; working with small and medium businesses is what I do. Some are better run than others. Some have good bosses and some have bad bosses. But a company run by someone stupid enough to lay off employees to cover gambling debts will be out of business in three months, and it’s a wonder the business ever existed in the first place.
I’ve seen businesses fail. The #1 reason an established business fails - far and away - is that they don’t diversify their customer base and die when their one big customer dies or moves or stops buying from them.
I’m not sure you understand.
Laying off employees **in an effort to cover an unrelated cost **does not make sense. It will not save any money.
Suppose I own a small machine shop with 25 employees, 18 of them my machinists and general labour. I have $150,000 in personal debts - gambling, coke, whores, whatever - that I want to pay off.
If I lay off $150,000 worth of labour how will that save money? If I was employing 25 people, I must have had some reason for employing them. If I lay off three machinists to save $150,000 over the course of the next year, I’m losing three machinsts’ worth of output. So either they weren’t needed in the first place - in which case they should have been laid off anyway, irrespective of my personal debt problems - or else I am laying off productive workers, in which case I will save the money but will also lose the capacity to produce product, thereby putting the business further behind. I must have employed those 25 people for some reason; if I reduce staff for reasons unrelated to the lack of need for those staff, it won’t make me money; in fact, it’s a deadweight loss, since the business is vbleeding the $150,000 to my dealer/bookie anyway. The company will in fact be down $300,000 or more, since it loses the money AND the production - unless, again, I didn’t need those employees anyway, in which case they should be let go whether I have debts or not.
If you could just make more money willy nilly by laying people off, all companies would lay everyone off and make oodles of money with no employees at all.
Perhaps you have seen a lunatic actually try this. Well, lunatics will be lunatics. What’re we supposed to do, legislate sanity? A business run by someone that stupid is going to die one way or another.