The current economic climate is precipitating a wave of strategy changes in organizations across the globe. Companies are under pressure to reduce costs across the board and supply chains in particular are a major target for efficiencies. A closer look at the technology sector in particular suggests, however, that in recessionary times companies will benefit from building more flexibility into their supply chains and spreading risk by diversifying into multiple sales channels. Are these two drivers necessarily in direct opposition? Can companies really innovate, improve flexibility and diversify while jobs are being lost?