Layoff

Layoff Definition

As per the layoff definition, an employee will no longer be in a position to perform work for the employer or collect wages. In some cases, the layoff is done for a temporary period. However, in some, it can be of a permanent nature.

Layoffs can be a very difficult phase to face as an employer. Another point to note is that layoffs, not all the time, are caused because of the employer. Many a times, these also happen because the organization is aiming at downsizing or may be experiencing issues with the personal management.

Reasons for Being Laid Off

Reducing the staff

Layoffs usually occur when the company decides to cut down some positions because of over-staffing, modification of the roles, and outsourcing. To make its operations more productive and efficient, a company might reduce the staff in redundant positions. Mostly it is done due to cost-cutting where the new management sees it as over expenditure in some positions. Layoffs may have an impact on certain departments or on a company as whole.

There might be expansion being done on some sectors like IT, and a shrinking might be done in sectors like marketing. This will eventually lead to layoffs in the marketing sector. Thus, the company will emerge as more evolving in the sectors they want to excel.

Cost reduction

One of the main reasons that a company may lay off is because the company might cut back on cost in some ways. The given need can arise as the company may not be making the desired profits to cover its expenses. They may also layoff as they need substantial extra money to pay off their debts.

Relocation

Moving the company from one place to another might Call for the layoff of some of the employees. Shutting down the location of the company will not only affect the laid off employees, but also the surrounding community’s economic condition. Hence, if the company is planning massive layoffs, it should keep the best interest of the employees by providing them with sufficient resources to get used to their positions.

Merger or buyout

If a company decides to do a merger or say an amalgamation with another company, or is bought out by another company, these changes might lead in corporate directions and the company’s leadership as well. If there is new management, it certainly will come up with new goals and ideas. This may result in cutting short of the employees, wherein the performance and positions of all the employees will come into account.

Alternatives to Layoffs

Here are some alternatives to layoff that can be followed:

• Encouraging voluntary retirements
• Cut back on the extras
• Considering a virtual office
• Offering more unpaid time off