You can't pick up a newspaper or magazine these days without seeing an article about layoffs. Almost every major corporation in America is eliminating employees in staggering numbers. The manufacturing sector has been especially hard hit.

No one denies that in a time of economic downturn (and this has been the worst since 1991) there is the need for staff reductions.

However, one has to question whether companies have done everything to cut costs before cutting jobs.

We recently met with a large manufacturer, a company we greatly respect. This company realized they needed to reduce costs. Here's what management did: They asked their employees the best way to do it. Suggestions poured in. They ranged from simple (shutting off lights) to more complex, well-thought-out suggestions. The result: the company is saving millions — that's right, millions — of dollars yearly in energy and other costs.

The point here is that this company actually listened to their employees. What a novel idea. And it's paid off.

Listening to employees can certainly help a company's bottom line. Today, in many companies, decisions are made by top-level executives who don't consult their managers or gain their input before making decisions that will impact specific departments and/or operations. They're too far removed from the front line and are only interested in head counts and short-term financial gains.

An exception is the Whirlpool Corp., which recently had to lay off a substantial amount of workers, but encouraged those still on the payroll to become more innovative. Those employees who suggest new ideas are rewarded with coupons that can be exchanged for gifts. Engineers have come up with designs for a new generation of appliances and innovation is being pushed.

While layoffs may be inevitable, Lawrence Stuenkel, author of From Here to There, a book on downsizing, advises companies to treat laid-off workers well because they may eventually be rehired. Also, he says this policy demonstrates to the remaining workers that they are working for a firm that cares about employees. He recommends that companies always tell employees the truth, and make sure laid off workers are given adequate notice and information about their benefits. He urges employers to "never, never burn internal or external bridges." That's not bad advice.