Financial Outcomes Paper Essay Example | Topics and Well Written Essays - 1500 words

Financial Outcomes Paper - Essay Example (The home depot, n.d.). The main cause for reduction in sales could be deduced as arising out of a general fall in demand for products of construction industry, due to unemployment and tight money market conditions which offered lowered scope for loans to meet housing repairs, etc. It could also be seen in terms of the fact that, in the US, the fragmented construction industry is not very concentrated, and is broken down to a large number of SME’s, who indulge in construction activities, making it very competitive and price sensitive. Thus, it has become necessary for Home Depot to cut down jobs. In the process they are forced to do away with sinecure positions and concentrate on the core business of generating revenues and business profits. Thus, the company has restructured its HRD, to begin with, in order to slash operating costs. Accordingly they have dispensed with both the Human Resource Managers and supervisors in all its stores. The company has announced that around 2200 employees would be affected by this change and there would be around 1000 job losses. (Can you improve service by firing HR people?, 2008). This has become necessary since profits of the company have slumped in recent years. The Gross Profit has come down from $25,997 M in 2007 to $ 23,990 during 2008, a fall of 7.72% when compared to the previous year. (Appendix 1) It is further seen net profits declined from $4395M during 2007 to $2260M in 2008, a dramatic and significant reduction of nearly 50%, or almost halved the profits during the year 2008 under review. (Appendix 1) Coming to the HR aspects, it could be seen that the main impacts or implications of job cuts or reallocation of the workforce into the core areas of business, the check outs and stores would be as follows: 1. The main functions of HR are in terms of addressing labor related issues, interalia, discrimination,