Why do companies, when they say they want to reduce 2% of costs, lay off 2% of their employees instead of just giving people a 2% pay cut?
I happened to work for a company in the past that did the latter - as employees we all thought it would be better to support each other by all taking the pain, rather than really sticking it to a couple people and everyone else being "fine."
I'd... wager a fair amount of money a 2% pay cut would see you losing significantly more than 2% of your employees, for most businesses. Maybe not as immediately, but... yeah. Lot of folks response to wages dropping is "find a job that
isn't doing that".
Some businesses have the right sort of environment that won't happen, but I'm fairly sure it's pretty damn rare.
E: Honestly, screwing around with your employee roster just... kind of in general is how you fuck up? If there's specific problem issues, you deal with the specific problem, but general adjustments are, just. Your company
is its people. Shit has a really hard time selling itself, even heavily automated services need some kind of employee roster to keep it functioning. You're rarely going to get genuine cost savings cutting payroll, because if payroll already isn't making more money than you're putting into it, you're probably fucking up
somewhere else really hard and reducing the amount of people on hand to friggin'
fix it isn't likely to, like. Help.
About the only time there's maybe an exception to that is when there's some major change outside your control (say some fuckwit puts 25% tariffs on steel or something, I'unno, maybe the last batch of administration did some really goddamn stupid things in terms of hiring, who knows) and you're not so much trying to find cost savings as trying to tourniquet a bleeding limb before the entire company goes under. At that point a 2% shift isn't going to save shit, though.