Recent Harrington HealthCare Layoffs
Harrington Healthcare System is yet another healthcare company to have a round of layoffs. The company recently laid off 23 employees, which equals 1.5% percent of its entire workforce.
The majority of the layoffs were given to managers and supervisors, including a smaller group of individuals who reported to the president and CEO of the company, Edward Moore.
The reason for the Harrington Healthcare layoffs came down to the company losing $8.2 million during its 2017 fiscal year. The expected savings from the layoffs and restructuring is estimated at $3.5 million.
Since the job cuts impacted more of the non-clinical service roles, there shouldn’t be much direct impact to the current operations as seen by the end consumers. However, the layoffs could still be felt by the customers because there may not be as strong of an organization in the background, running the business operations.
Who’s to Blame for the Harrington Healthcare Layoffs?
Normally, when there are layoffs, it is easy to say that the competitive environment is difficult to operate in and that the company needs to cut costs. One example of this is in the retail industry, which has been seeing dramatic changes to its business model.
In this situation, however, the company operates in the healthcare sector, which is known as a consumer staple service that doesn’t feel much impact from the economy’s performance. The reported layoffs are more due to the company not being properly managed, financially. The management team has been spending more than what is being earned through its revenue sources. No company could achieve success with such results. Part of the financial problems may have to do with expansions over the past few years.
Will These Layoffs Put Harrington Healthcare System in the Black?
Even though Harrington Healthcare System has reduced its operating costs, the books are still in the red. Since the largest cost of operating a company are wages, it could mean there will be more layoffs announced by in the future.
The company could let the fiscal 2018 year complete and then look at its financials to determine how to proceed. Since this round of job cuts were mostly of managers and supervisors, this trend could continue, since this group of individuals earn the highest wages and benefits. Laying off the highest-salary earners will have the greatest impact on the bottom line of the business.
“23 layoffs at Harrington HealthCare System,” Telegram.com, November 24,2017.