Thursday, February 23, 2012

New Procter & Gamble Layoffs Illustrate the Dangers of Playing It Safe

The job market might finally be improving, but that doesn’t mean the road ahead will get any smoother for businesses that went into survival mode four years ago. A case in point: Procter & Gamble announced today it is cutting 5,700 jobs over the next 16 months. Its brands, such as Crest toothpaste and Tide laundry detergent, haven’t improved in recent years. Meanwhile, consumers have become more selective.

This is just one example of the dangers of playing it safe. Businesses like Procter & Gamble also have to adapt to rising energy costs, a changing distribution system, and as the economy improves, a tighter job market. It’s a situation that favors the more ambitious and adaptable businesses over the more established businesses that are just trying to survive.