Consequences of budget cut

With the economy has been down for almost over a year and unemployment rate hits the highest point in 20 years, it is not news to hear for-profit company or not-for profit organizations cut back in production and staff. Some said that this is an excellent opportunity for organizations to reform on their structure and be innovative about their production expenses, especially for those that has huge fixed cost. It is also a chance for the arts to reform and survive economic hardship. However, have we thought about the consequences of the major cut back on staff and expenses? What about productivity and quality of the work? It is common to see lay off of a few administrative positions across various departments of an organization and the duty is either split between the lucky ones who escaped the lay off or took over by new part time employees. The work load of operating an orchestra or theater is not necessarily less during an economic downturn, it actually is more difficult and challenging if not less. The heavier work load and paid freeze on a smaller sized staff definitely has impact on the quality of their output. Can the marketing team come up with fresh and creative ideas for selling the holiday hits if they are simply under-staff and just try to meet one deadline after each other? If the Project Manager in the Education and Outreach department had to oversee more projects, will that affect the quality of the program because he can't be at all the places at one time for all that is happening? Leading arts administrators or CEO should really consider the long-term consequences before they decide where to put the axe.