if you're in the company Public Relations department, the best formula is whatever one gives the lowest number that you can truthfully put out in the press release, so you can write "Amalgamated Sludge International undertook a Hominid Resource Reallocation Process which resulted in just 0.9166% fewer employees on an annual basis."

If you're the guy in charge of streamlining the company, the BEST formula is whichever one meets your promised goals, so you can truthfully say "Annuallized, I cut the payroll as promised by 36%."

You can get EITHER FIGURE by using different assumptions:

(1) We cut 11% of the employees this month, but won't cut any the other 11 months of the year, so that's 11/12% annualized.

(2) We cut 3% of the employees this month, if present trends continue, that's 36% annualized.

Numbers are such wonderful things.