Workplace
Taking a pass on layoffs
Even as layoffs climb near historic highs, some companies are working hard to hold on to their workforce, said Matt Richtel in The New York Times. Instead of saving money by slashing jobs, they’re doing it by reducing salaries or mandating time off. Dell asked employees to take an extended unpaid holiday. Cisco implemented a four-day shutdown. Motorola asked staff to take salary cuts. Other employers are shifting to four-day workweeks and trimming benefits. “Companies taking nips and tucks to their workforce say this economy plunged so quickly in October that they do not want to prune too much should it just as suddenly roar back.”
Layoffs are often seen as a “useful part of the business cycle” because they “weed out” underperformers, said Cari Tuna in The Wall Street Journal. “Some people,” says management consultant Mark Nadler, “are just more crucial to the survival of the organization than others.” But when you have the right team in place, handing out pink slips can be shortsighted. Besides the costs of legal fees and severance, layoffs have a ripple effect on morale and productivity, says Anat Lechner of New York University’s Stern School of Business. They shouldn’t be used as a quick way to cut costs but as part of a strategy to retool the business for the future.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Create an account with the same email registered to your subscription to unlock access.
-
Smoking ban: the return of the nanny state?
Talking Point Starmer's plan to revive Sunak-era war on tobacco has struck an unsettling chord even with some non-smokers
By The Week UK Published
-
Crossword: September 7, 2024
The Week's daily crossword puzzle
By The Week Staff Published
-
Sudoku hard: September 7, 2024
The Week's daily hard sudoku puzzle
By The Week Staff Published