What are the risks associated with reducing overhead costs?
While reducing overhead costs has clear benefits, it also comes with potential risks:
Quality Compromise: Cutting costs too aggressively can lead to a compromise in quality, affecting customer satisfaction and brand reputation. Employee Morale: Cost-cutting measures like reducing office space or employee perks can negatively impact employee morale and productivity. Hidden Costs: Some cost-saving measures, such as outsourcing, may have hidden costs related to coordination and quality control.