Profit Doesn’t Have to Cost Jobs

When leadership is under pressure to improve margin, headcount cuts are often the first idea. But they shouldn’t be.

The smarter play:

Instead of cutting people, cut waste. Streamline flow. Fix broken handoffs. The biggest margin gains often come from structural fixes, not layoffs.

Where to Look for Hidden Margin:

1. Plant or floor layout
Can you reduce motion and travel time? Even 10 seconds saved per cycle adds up fast.

2. Procurement standardization
Too many vendors, inconsistent pricing, and no leverage. Clean this up and margins move.

3. Project and time tracking
What is your team actually working on? Most companies can’t answer that clearly.

A Real Example
We helped a client find 5 full points of EBITDA margin just by improving reporting, plant flow, and indirect costs. Not one layoff was needed.

Summary
You don’t need to shrink the team. You need to tighten the system.