Company Lay off

COMPANY LAYOFF

2007

Company Layoff

Introduction

Historically , layoff is often associated with bad publications for companies performing it . Furthermore , there are various other negative effects that are associated with the application of layoffs . Sometimes layoff is the only way that the company must perform , in the sense that managers of the company have no other solution to cope with problems of the company . Despite the comments of observers and researches revealing the bad effects of massive layoffs , company layoff still becomes a part of modern companies ' daily lives p

Concerning the issue , this will review articles about layoff and several important factors . The review aims at creating a simple conclusion regarding the practice of layoffs and their tendencies Afterwards , the will use one of the latest layoff policies to justify the conclusion and also to evaluate the layoff within a company The focus of the is to describe the effects of company layoffs and present a practical example of the conclusion Company Layoff

II .1 . Definition

By definition , layoff refers to a termination of employment of an employee or group of employees due to unfavorable business situation The term is common in the business environment and does not often generate uneasiness

However , mass layoffs often become the source of debacle and confrontation in the workplaces . Firing employees in individual manner does not generally raise too much problem because they generally contain justified reasons of why the employees ' employment must be terminated

In addition , mass layoffs often generate trouble due to the fact that mass layoffs are performed solely due to economic reasons . In other words , employees being laid off could have performed no mistake in hi /her job that deserves the termination of employment . Within this , the discussion is focused more on mass layoffs rather than individual layoffs (Layoffs , nd II .2 . Why Layoff

Researchers identify two reasons concerning layoffs . The first category relates to the internal condition of the company in which layoffs are performed . Companies perform layoff because of profitability reasons The goal of performing mass layoff is to reduce the labor cost of the company . This is true since in most manufacturing companies , labor costs become significant parts of the operational costs of the company Therefore , reducing the labor cost without hurting revenues could mean enhanced profitability (Layoffs , nd

However , some layoffs occur because management believes that revenues in future periods will go down . This could be the result of enhanced competition , problems with corporate supply chain , changes in managerial structure , etc . In to maintain profit , management often decides to cut labor costs (Layoffs , nd

Another reason of performing mass layoffs is external reasons . A downturn in macroeconomic conditions could result in financial problems for most companies . This macroeconomic downturn could have effects limited to certain industries or could happen nationally . In to cope with such problem , companies could decide to cut labor costs and saves some level of profitability . This type of mass layoffs generally costs less debacles because 'everyone is...