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 slowdown or interruption in work

Causes of Job Layoff...
 Worker Characteristics  Performance  Tenure  Education  Organizational Change Characteristics  Announced Layoffs  Upcoming Merger  Organizational Restructuring  Job Characteristics  Contingent vs. Permanent  Part-time vs. Full-time  Union vs. Non-Union  Organizational Technology  Changing Technology  Proximity of Job to Core Technology

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 ls

effects of mob sales s ile pho lowdo ne wn

Sun reorganizes, cuts upto 18% of its workforce

THANK YOU

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