Question

What action might a company take if profits started to fall after having added a number of new workers?

Answer 1

When a business's profitability started to decline following the hiring of numerous new employees, it might do the following:

Until profits stabilize, cut back on hiring or put a stop to new hires.

Increase productivity and efficiency to get the most out of the resources you already have. Review and cut costs to increase profitability. To boost sales, change your price and marketing techniques.

To lessen reliance on a particular product or market, think about broadening the company's offerings.

The business may also examine the causes of the declining profitability and make necessary modifications. For instance, the business can review its pricing strategy or look into new markets if the problems are brought on by rising manufacturing costs or diminishing market demand.

Step-by-step explanation:

Answer 2

If a company's profits started to fall after having added a number of new workers, it might take the following actions:

Reduce the number of new workers or halt further hiring until profits stabilize.

Increase productivity and efficiency to maximize output with existing resources.

Evaluate and reduce expenses to improve profitability.

Adjust pricing and marketing strategies to increase revenue.

Consider diversifying the company's products or services to reduce dependence on a single product or market.

Additionally, the company might analyze the reasons for the falling profits and make adjustments accordingly. For example, if the issues are due to increased costs of production or declining demand in the market, the company might reconsider the pricing strategy or explore new markets to increase sales.

Step-by-step explanation: