LAYOFF

– MEANING, REASON AND SURVIVAL

Presented by –
Sonuka Agarwal
Mitra Suman De
Neha Muraraka
Olivia Ghosh
 Meaning
Layoff is the temporary suspension or
permanent termination of employment

of an employee or (more commonly) a

group of employees

for business reasons, such as the

decision that certain positions are no
longer necessary or a business slow-
down or interruption in work
 Causes of Job Layoff...

 Worker Characteristics  Job Characteristics

 Performance  Contingent vs. Permanent
 Tenure  Part-time vs. Full-time
 Education  Union vs. Non-Union

 Organizational Change  Organizational Technology

Characteristics  Changing Technology
 Announced Layoffs  Proximity of Job to Core
 Upcoming Merger Technology
 Organizational
Restructuring
Proportional representation for causes of Layoff
 Six Stages of the Unemployment Cycle

• Before the layoff

• The layoff

• Intensive job search

• Retraining

• Running out of benefits

• Adjusting to a new job

Staying Off the Layoff List

• Keep an eye on the horizon

• Avoid these pink slip-ups by nurturing
relationships with peers or subordinates
• Show what you've done for them lately
• Capitalize on opportunities to avoid layoffs
• Be mentally prepared for that dreaded pink slip
 Side-effects of Layoff for the
Company
Sometimes things don't work out as forecast for a company.
Clients delay purchases. Suppliers raise prices. Competitors steal
market share.
Unfortunately, the very pressure to take action quickly ultimately
works against their own best interest. Foolishly therefore,
reducing the workforce becomes an automatic response for
companies who need to cut costs. But it has its side-effects :
• Job cuts reduce performance
• Job cuts don't save money
• Threat to investments
• Demotivation to Downsized survivors
 Benefits of long-term employment
relationships

 Amortizing recruitment costs and training costs

 Evaluation of abilities easier  better job assignment
 Better performance evaluation  incentive contracts
easier
 Loyality to employer and co-workers, identification
with firm‘s goals
 Promotion from within (internal labor market)
 Alternatives to layoff

• Restructuring the business

• Closing of obsolete plants or

branches
• Administrative overhauls
(revision)
• Selling of non-core operations
• Improving internal processes
 Side-effects of Layoff to the employee

When the employee losses his job, he not only losses his paycheck but
he with his family experiences many other losses such as –
• Loss of wages and benefits
• Loss of role as worker and provider
• Loss of dignity and self esteem
• Loss of the "American Dream"
• Loss of trust
• Loss of control over your life
• Loss of the pattern of daily life
• Loss of the work family
• Loss of collective strength
Loss can lead to anger Faced with losing your job and the
uncertainty of what will happen next, it is normal to feel sad,
frustrated or angry and stressed.
Unemployment can make employee sick Unemployment is a health
hazard. For every 1% rise in the unemployment rate, the following
increases were recorded nationwide:
• 36,887 additional deaths
• 20,240 heart attacks
• 495 alcohol related deaths
• 920 suicides
• 648 homicides
• 4,227 admissions to mental hospitals
• 3,340 state prison admissions
 Surviving a Layoff
Few small things might help an employee come out of
Unemployment blues. These are –
• Fighting back against stress
The best way one can combat stress is to take care of his physical and
emotional health. It is important to eat healthy food, get adequate
rest and stay physically active. Don't isolate yourself. Laugh together
with people you care about.
• Beat the Unemployment blues
Have a plan
Make a schedule
Keep in touch with friends
Stay on top of finances - make a financial action plan
• Make your job search more effective
 Spread the word
 Make a schedule
 Prepare for job interviews
Present your experience in the best light
 Expand your job search
 Be persistent
 Keep in touch with co-workers
 Do Part-time services
 • Other Tips to survive a layoff,
financially
 Negotiate with your employer to get a
good severance package after being laid-off
 Come down heavily on your socialising
expenses including outings to hotels,
multiplexes, vacations, etc. to save money
for emergencies and repayment of loans, if
any
 If your severance package is good make
sure that you keep at least 20 per cent of this
money into an emergency fund
 Layoffs due to Recession
In 2008, a global economic crisis was suggested by several important
indicators of economic downturn worldwide. One of its major impacts
was increased unemployment rates of upto 6.1% (highest in 5 years)

 After 9/11, unemployment

rate increased .7% Rose
from 4.0% in 2000, to
4.7% in 2001
 Following year, rate
increased 1.1% to a high
5.8% (highest peak point
in 7 yrs)
 8.4 million unemployed
=1.4 million increase since
2000.
Nokia laid off around
600 employees
Boohoo for Yahoo
Nortels has lost its network
Dell dumps nearly 9000 people
 AMD lays off 500 staff
as financial problems continue
AT&T lets loose managers
Cisco cuts jobs in Texas
TI fee
lseffects
of mob
sales s i
lowdo le phone
wn
Sun reorganizes, cuts upto
18% of its workforce
THANK YOU