clipped from: findarticles.com   

CHAINSAW: The Notorious Career of Al Dunlap in the Era of Profit at Any Price. - Review - book reviews


Byrne does an excellent job of chronicling the human torment resulting from these plant closures, where experienced and efficient lifetime employees of Sunbeam were suddenly thrown onto the unemployment rolls. He also shows that many of the closure decisions were completely irrational from a business point of view. Profitable facilities were shut down and the costs incurred from production shifts could not be recouped in the foreseeable future. But Dunlap was determined to impress Wall Street with record jobs cuts, and he refused to listen to cautionary warnings.


When his year was up, the consequences of his cost-cutting for the company's medium-to-long-term health quickly became apparent. Production snafus were commonplace. Buyers were over-stocked with inventory, because Sunbeam sellers had inflated sales by offering deep discounts. Product quality slipped.