When I worked at Target, if our store didn't show annual increase in sales of at least 12%, we lost payroll for the next year to keep profitability increasing. This was the case for 12 straight years. And the payroll decrease was always bigger than what we missed sales by. So if you only increased sales by 10%, you lost ~5% of payroll for the next fiscal year. If you only increased by 5% YoY, you lost ~10% of payroll, etc. I think the CEO changed 3 or 4 times while I was there and this was always the standard.
GrinchMcScrooge t1_isuiqbh wrote
Reply to comment by Dirty_Old_Priest in Microsoft confirms job cuts after calling for growth to slow by ShoestringTherapy
When I worked at Target, if our store didn't show annual increase in sales of at least 12%, we lost payroll for the next year to keep profitability increasing. This was the case for 12 straight years. And the payroll decrease was always bigger than what we missed sales by. So if you only increased sales by 10%, you lost ~5% of payroll for the next fiscal year. If you only increased by 5% YoY, you lost ~10% of payroll, etc. I think the CEO changed 3 or 4 times while I was there and this was always the standard.