The company that makes the controversial pink slime used in ground beef -- Beef Products, Inc. -- is laying off more people. According to them, it's because the media has engaged in a blatant campaign of disinformation. Is that an accurate claim?
While the company contends their product is completely safe, others beg to differ. Once Americans found out what was in the concoction, they stopped buying ground beef. That resulted in a dramatic drop in sales.
Right after ingredients contained in the controversial product got announced, the company dropped off a whopping 650 people. While their second layoff is much smaller, it's still significant. It puts another 86 people out of work in an already struggling economy.
It's important to remember that pink slime is ammonia soaked. It was only approved for use in dog food, which in itself is still questionable. It certainly wasn't given a red light for human consumption. That's why a major supermarket chain -- Safeway -- jumped off the product's bandwagon back in March. Since then, many other grocery stores have followed suit.
It's sad to know that people are losing their jobs over this situation. However, a company that puts all of its profits into one product line risks this kind of situation. When the product is no longer wanted or needed, the company must either switch is product line or risk going bankrupt. Therefore, it was bad business planning on Beef Products, Inc.'s part right from the start.
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Comments: 2
A healthy company never allows a single customer or a single product to become over 5% of the business of the company.