Finance: What is Reduction in Force (RIF)?

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Transcript

00:20

debt it knows so it must reduce its workforce And

00:23

it fires well pretty much everyone not in a core

00:26

position What is core Well at Ford Motors The people

00:30

who make the engines are core the secretary to the

00:33

person who lobbies the Gove to say nice things about

00:36

Ford cars Safety track record Well she's not core although

00:39

we love her But sorry As the man says you're

00:42

fired Reductions in force happened when things go awry and

00:46

companies must scramble simply to pay the rent Yeah tough

00:49

times but you know welcome to the NFL Reductions enforce

00:53

happened for other reasons as well Think some natty combination

00:56

of robots replacing highly paid union workers more efficiently and

01:00

or the spread in cost between manufacturing your whoopee cushions

01:03

in Chicago versus making them in Beijing have a big

01:06

spread in those costs Well when the robots can't do

01:09

the job better cheaper faster than the humans Why wouldn't

01:12

accompany replace the union workers It's way cheaper to hire

01:15

robots a mental complaint or strike At some point some

01:18

shark manager will ask Why are we fighting this difficult

01:21

fight Let's move production overseas And when that goes smoothly

01:25

while the company yeah usually induces a gigantic reduction in

01:29

force ending the domestic jobs of some multiple thousands of

01:32

whoopee cushion makers or W CMEs as they call them

01:35

in the trade Or you know in the biz that's

01:37

what happens Work forces are obviously a heated topic among

01:41

politicians as well Phyllis fired workers generally don't vote for

01:44

more of the same because we live in such a

01:47

litigious society today Well firing any individual worker could lead

01:51

to an ugly lawsuit for a variety of reasons as

01:54

well One of them might exist in one form or

01:56

another of what is called a protected class and those

01:59

classes is comprised subsets of gender sexual preference ethnicity race

02:04

age religion and myriad other classes including yes mermaids So

02:08

when a giant reduction in force happens and essentially everyone

02:11

in the group is fired while the risk of these

02:13

kinds of lawsuits is dramatically mitigated but it's sad in

02:16

any way shape or form Riffs aren't fun for anyone

02:19

and well additionally everyone really loved Martha the PR secretary

02:22

who had been at the company for 27 years and

02:25

never forgot a birthday Unfortunately the world got rough for

02:27

Martha and she had to go to at the end

02:29

of the day shareholders on the company And it's their

02:32

call is toh how they want it run There is

02:34

no crying in baseball but lots of crying when there's

02:37

a riff Sorry we're