Why Do Companies Use Layoffs As a Business Strategy?
Each company has a different approach to layoffs, often due to different tolerance levels for letting people go. Some companies seem to lay off easily, whenever they’ve had unusually poor quarterly profits for one or two quarters or perhaps after a disastrous quarter, like several companies did as a result of the terrorist attacks. Other organizations, those espousing a belief that people are their most important asset, try to ride out several poor quarters without laying off any employee. How Do You View Layoffs? Chances are you will answer this question differently depending upon where you are in an organization. A senior manager who’s facing a layoff decision may fear it’s the only way to stem the red that’s hemorrhaging from the company’s fiscal aorta. Middle managers faced with the decision of whom to lay off may feel overwhelmed with the challenge of balancing the individual and group good. From the point of view of those workers let go, the impacts are many and varied from just
