Why layoffs

They may also decide to only temporarily lay off employees, with the intention of reinstating their employment during the next busy season. Related: What Is Seasonal Work? As technology continues to advance, and automation becomes more common for businesses, some employers may lay off their staff to reduce their costs and decrease position redundancies.

However, an organization may commit to finding another role for the employee and transfer them to the position if the employee meets certain requirements and is willing to make the change. A company may go through a massive hiring to support the needs of a large-scale project. However, if that project is canceled the company may need to lay off the employees it hired. Although an organization may move employees to other areas of the business to prevent layoffs, it may need to lay off some employees who don't have the experience to work in another department.

Sometimes companies go through a pay scale and job description restructuring, which usually involves an outside company evaluating how the business currently operates and offering suggestions for changes based on similar companies and the need to stay competitive while being fair to employees.

What can happen during a restructuring is that the company may change their job requirement for certain positions. For example, while one position may currently require a high school diploma, the job description could update to require a minimum of a bachelor's degree. The company may lay off any employees in that position who don't meet the new requirements.

Offshoring is the act of moving your business operations overseas. There are many reasons a company may choose this route, including more cost-effective labor and tax breaks, but they may not select to keep the same employees, opting instead to hire new staff members once they set the business up in the new location. If this is the case for a company you work for, you may experience a lay off.

Find jobs. Company reviews. Find salaries. Upload your resume. Sign in. Career Development. What is a layoff? Company relocation. Business closing. Your plan will need to address some or all of the following elements. As you plan and communicate the layoffs that your unit faces, maintain a record of the actions you take and when you take them. The layoff planning elements below are divided into three sections:. Incorporate resources designed to assist employees in your communication plan; see the communication planning section below.

Preserve the functions necessary to support your core mission Identify and prioritize the functions necessary for you and your department to fulfill its core mission, the work that is necessary to support those functions, and the positions that perform the work.

Position s being considered for elimination or reduction including temporary positions For each position, identify the reason s the position was selected e. Post-layoff work distribution plan Identify individual positions and the work that will be assigned to them.

Develop revised job descriptions, as necessary. Evaluate the budgetary impact of anticipated classification or grade changes. Possible changes to organizational structure Identify changed reporting relationships based on the number or type of positions that you will have to eliminate or reduce, consolidation of functions, etc.

Planned vacations or other leaves of absence Make a record of planned vacations or other known leaves of absence. Your HR consultant will need this information to ensure that employees receive proper notice of layoff. Special considerations for employees If any employees scheduled to be laid off have indicated an interest in retirement, ensure that they have sufficient notice so that they can plan the timing of retirement to coincide with the layoff effective date if possible.

Identify any professional staff who have accrued more than hours of vacation time off, and make sure they understand the vacation time off payout limitations of the Professional Staff Program.

Layoff notification planning Planning element Planning goal Written resources for employees Work with HR to ensure that all written resources employees receive are assembled, checked for accuracy, and ready for delivery.

Support resources Ensure availability and arrange for the presence of any special support resources, e. UW CareLink. Layoff notification environment Provide for private meetings with the employees whose positions will be eliminated, reduced, or restructured.

Employees who become especially upset Some employees can become especially upset following layoff notification. Post-layoff notification planning Planning element Planning goal Plan for employees who will move to another department through the layoff process — bumping or rehire list placement Review the Checklist - Transferring Employee campus MS Word.

Return to top. When confronted with the need to eliminate or reduce positions, some supervisors may be reluctant to share information out of fear that employees will leave for other jobs before the unit is ready, or that they will become upset and unproductive.

Instead, it is almost universally the case that employees respond best when they receive accurate and timely information about the circumstances the unit faces. If employees remaining in the unit after layoffs believe that management has neglected their needs by withholding critical information for too long, they may not trust management, may not support changes in work, and may look for other employment opportunities just when their contributions are most needed.

Tailor communication to the circumstances of the layoff and the dynamics of the workplace. For example, if one or two employees must be laid off due to loss of grant funding, the employee communication will need to recognize that:. When significant funding reductions or departmental restructuring are anticipated, employees will be anxious about their own security and look to management for information that will help them know what to expect.

If this is your situation, share as much information as you reasonably can about your assessment and planning process so employees do not feel left in the dark. In the absence of real information, rumors may propagate and disrupt the workplace. Anticipate that employees whose positions are being eliminated or reduced will want to know how the decisions about which positions to eliminate were made.

When a significant number of top brass are jumping ship , company-wide layoffs could very well be around the corner. More than one round indicates there will be even more rounds. Keep your eyes peeled and ears open.

Instead of freaking out about impending layoffs, focus on what you can control—your own career. Monster can help you jump-start your job search for free so you have options to consider before the fallout. Layoffs are a part of life, unfortunately, but a little foresight can go a long way. Let Monster lend you a hand. Thank you! You are now a Monster member—and you'll receive more content in your inbox soon.

By continuing, you agree to Monster's privacy policy , terms of use and use of cookies. Search Career Advice. Advice Workplace Quitting a Job. Here's what you can do about it. Daniel Bortz, Monster contributor. These are the signs that job cuts are likely on the way.