Take a look at these international news stories and share your thoughts:

• Thomson Reuters, a major media company, announced layoffs of 3,200 positions worldwide.
• Bayer, a giant in the pharmaceutical industry, is cutting 12,000 jobs globally.
• GMM plans to close factories and lay off another 15,000 employees worldwide.


Now, back to Thailand. There are predictions of a significant number of layoffs. I read online that Pandora, a major jewelry company, is preparing to lay off 1,200 employees after a sharp drop in sales in the first quarter of 2019. Additionally, the National Broadcasting and Telecommunications Commission (NBTC) forecasts that after the return of digital TV channels, another 1,500 people may lose their jobs.


Consumer confidence in Thailand has also dropped significantly. In December last year, the confidence index was around 79.4, and in April this year, it fell to about 79.2, compared to approximately 83.2 in August last year. This indicates a worrying decline in consumer confidence throughout the fourth quarter of last year and the first quarter of this year.

Moreover, there are rumors within my own company about layoffs that haven't been reported in the media, affecting thousands of positions. Companies that have never had a layoff policy before, even during the economic crisis in 1997, are now facing serious issues. Conversations with friends in management across various sectors reveal that the fourth quarter of 2018 and the first quarter of 2019 have been particularly challenging in terms of sales.


Many people are hopeful that the new government will stabilize and manage the economy effectively. However, there are still no positive signs regarding stability or the formation of a government that could improve economic confidence, leading to layoffs as a cost-cutting measure for companies.


I observe that the current economic problems may be more severe than those in 1997, as the bubbles that burst now may not show warning signs like the baht crisis did, but rather will deflate gradually and quietly.
 
The question is, how can we survive during this period? As a behavioral scientist, I would like to share some thoughts on adapting management during this time:
 
Assess Internal Potential in terms of production and productivity to see how current outputs align with company expenses. Have we been utilizing our workforce effectively? I've seen companies hire master's degree graduates for clerical work. It's time for organizations to evaluate whether employees can contribute more. Consider adjusting job roles to match their true potential or interests.
 
Maintain a Positive Outlook Many executives are becoming anxious about the current situation and making decisions based on fear, leading to worse outcomes. Try to shift your perspective; while we are in a downturn, things will eventually recover. However, decisions must be made carefully rather than relying solely on instinct.

Customer-Centric Approach Consumer behavior is changing rapidly. Understanding customers in traditional ways may not suffice. It’s crucial to grasp their needs quickly. In my marketing research work, collecting data for 400 reports used to take weeks, but now we need to adapt to understand customers in just a few days and present relevant insights rather than just attractive presentations.

Seek Collaboration with Partners or competitors. I believe employees within an organization have strengths and untapped potential. For example, a barista can make over 100 cups of coffee a day, but due to reduced orders, they may only produce 30. This indicates an opportunity to increase production. Consider partnering with nearby businesses, like bakeries or bistros that don’t sell coffee, to offer coffee together, which could boost sales and expand our coffee channels.

Continuously Assess Market Conditions The movements of competitors, customers, and partners inevitably affect business operations. Many executives have historically received delayed or inaccurate information, leading to poor or delayed decisions. Improving the speed and accuracy of data presentation through digital means or enhancing teams to monitor quality across production or marketing will improve decision-making efficiency.

Consider the worst-case scenario. Finally, I suggest that executives evaluate the worst-case sales scenarios. Decide how you would operate in such situations. Is laying off employees the true solution, or can we find one of the fourteen million alternatives to survive in this economic climate?
 
 
Thanks to Dr. Wasupol Treesopakul, behavioral scientist and senior marketing researcher, for the information.