Just how far will the economy deteriorate? If we knew the answer to that question, decisions about layoffs would be that much easier to make. But the reality is that we don’t know when we will hit the bottom. If things turn around more quickly, layoffs may be a disaster. If the recession lasts longer perhaps the measures taken now are not deep enough.
When companies are under financial pressure and there is a perceived need to take action quickly, the immediate focus is often on cutting costs, not raising income. Thus , layoffs is the typical response for companies that want to look good in the short run. But what about the less obvious and undesirable long-term effects? Aren’t employers losing the tremendous long-term investment they have made in their employees – key talent may be lost and those left behind most likely suffer from low morale and poor performance.
The next couple of weeks we will be discussing alternatives to layoffs, and hope you will comment on the discussions initiated by Bosse and Casey. Do you think deeper layoffs are productive or counter-productive? Should layoffs be a last resort, not a first choice? Do layoffs truly save money or do they ultimately increase expenses, at least in some situations? AND, what are some other more productive cost-cutting measures –alternatives to layoff? Are companies piecemealing too much! What about income-producing measures? Submit your owns storiees; the good, the bad and the ugly!
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