Benchmarking Synopsis
Like Global Communications, First Data Corporation has made a decision do some downsizing in their company. This downsizing would help them keep up competitively and help make the company more profitable. First Data Corporation has decided to lay off 10% of its merchant processing division. This move was an attempt to cut costs in an increasingly competitive business (Keenan, 1998). This decision has employees in an uproar. First Data Corporation hopes that its employees understand the reasoning behind their decision to reduce cost to keep up with competition and to increase its company’s bottom line and to become more efficient.
Response
First Data had decided that it was not close enough to the customers. The changes were meant to “take layers out of the organization (Keenan, 1998).” This reduction is designed to improve the efficiency of our merchant processing operations while keeping our focus on customer service. Work force reductions will take place at all levels of the company and in all 10 First Data Merchant Services facilities (Bloom, 1998). First Data Corporation decided that it was going to fire about 500 of its 5,200 workers. First Data Corporation also decided to close one its 10 credit and debit card processing facilities (Keenan, 1998).
Outcome
First Data will continue its efforts to "lower transaction costs and improve overall profitability. It will also put emphasis on identifying ways to streamline and combine work processes and eliminate any resulting duplication (Bloom, 1998). There were other ways to cut cost and make the company more profitable First Data could have laid off all of its temporary hires that they add on to fill open slots within the company. They also could have let full time employees go to part time if they wanted to. First Data could have cut out all of the over time it gives it employees.
References
Bloom, J.K. (1998, March 6). 1st Data Merchant...