Business Management 101: The management and operation of a large company is not a trivial task. The maintenance of the daily operations of such a company can result in huge overhead that cuts into profits. A cut in profits results in a lack of growth, stagnation, and eventual failure of a corporate entity.
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Cutbacks come in many forms. Some look good on paper, but can be lethal to a company's sense of employee morale, or might be severely damaging to a public relations image, which was undoubtedly costly to develop in the first place. Some cutbacks and cost-saving measures have big qualitative impact but very little quantitative impact—and in a world where bottom line is king, it's the quantitative impact that companies should focus on.