downsizing

I've been having difficulty sleeping. I see the faces of the people I have to lay off. I see them with their families, I see them working hard at their jobs. I've made decisions to fire people who have done something wrong, violating company policy, etc. But, I've never had to lay someone off because I wasn't able to pay them.

A few minutes ago was the first time I did that, It was difficult to hear the employee mention that he also has bills to pay and a family to feed. It was an employee that has been working with us for many many years. What is worse is that I have to do it again later in the day with a couple more employees.

Never before have I been doing in my company what was being mentioned in the news as going on in the overall economy at the same time. I hate the fact that is coincides with the words "job cuts".

There is only one rule for survival.
bring in more money then you spend.

over the past several months I've been having trouble doing both. 1-bringing in money, and 2-controlling expenses.

when the building boom was going strong, I didn't have to think about it. enough money was coming in, there was no need to control expenses. I was even able to get a raise for myself.

but the boom is over, and bills are coming in faster then the money.

I speak to those who have experience and am told that the company must cut expenses immediately. the goal is simple:
get the company in the black.
And aside from cutting expenses by 25%, they recommend that I downsize the company immediately.

I took over as president of the firm in 2002, during the boom. Before then, my father ran the firm. I've never had to downsize before. what do I do? So I've meet with the supervisors and decided where to make the cuts. Every department will see a reduction in staff. Every department. That's at least 5 people who I must lay-off or shift to part-time status.

It is said that when downsizing you retain as much of the middle management as possible. The executives at the top will not be able to do the work of the bottom tier, neither will the technicians at the bottom be able to do the work of the top tier. But the supervisors in the middle can step down to do tasks that are below their level as well as step up to jobs higher then their level. It makes sense. They must teach this statement at business schools because I heard it from a couple of different folks.

There is a little uncertainty in my mind,
I must eliminate this uncertainty.
I must stay determined.
... stay strong
... stay focused
... keeping the company profitable is my job.

I am certain that...
I must make the decisions that no one else can make.
I am the Chairman.

It is certain that employees did not fear me.
By the end of this week they will.

It is certain that fear is good.
It establishes a realization of consequences for inaction.

It is certain that the company will become profitable with these cuts.
The first cuts are where we are obviously overstaffed and unnecessarily spending. The next cuts are at the executive level and where we are paying too much.

It is certain that when the company is smaller, the productivity will increase. No more thinking that someone else is there to do the job. We will be maximizing our potential output.

It is certain that when incentives are in place, people will produce. Pay less but give bigger bonuses. If people get paid to produce, they will.

It is also certain that we can become more efficient if we change some policies and procedures. these are only short term fixes to the problem. changes will have to be made in how we operate, to ensure success in the long term.
My goal is that by the end of March. This company is ready to take on this recession.