“Identifying what is “best” of cost-cutting measures during a pandemic is complex. Several companies took employee retrenchment as their first cost-cutting measure. Provided that manpower cost is often one of the highest operating costs for businesses, it can be “good” and even vital for the entity’s survival. However, it is the opposite for the employees and therefore still not best for the organization entirely.
“So the answer would depend on the company’s capacity and values. In iRipple, employee retrenchment is the last resort. We don’t see people as a liability or a means to cut costs – they are the lifeblood of this company. Instead, we believed and held onto our core values. With the boldness, creativity and dynamism of our people, we came up with products that can make us relevant in this new normal. And while on a work from home structure, we made sure that they are productive and are able to sustain our business requirements despite the lockdown.
“Cost-cutting, therefore, has been minimal and only came naturally through the non-consumption of office supplies and utilities while the employees are working from home. We also pre-terminated one of the lease contracts since offices aren’t being utilized, and restricted expenses to absolute necessities only.
“Overall, cost-cutting has not been a major step for iRipple, rather it’s cash management. We focused on collection, and diligently projected and monitored cash flows. The company and its employees are blessed that iRipple can sustain this and that management chose to.”