Why Companies Lay Off Workers?

One of the main reasons why companies lay off workers is to cut costs, especially when the companies ’debts accumulate or their profits fall due to lower sales.

2- Reducing employment

Companies may reduce employment in the event that they have excess employment, or because of the company’s desire to get rid of jobs that it does not need, or because of a new leadership in the company and change its direction and plans, which leads to a re-change of job titles and tasks, and this also results in layoffs The employment the company finds redundant in this case.

3- Moving the headquarters

The relocation of the company’s headquarters or one of its locations may cause the layoffs of a large number of workers, which may affect the morale of the rest of the workers, so if the company is forced to do so, it must show real interest in helping workers and providing them with the resources that help them overcome this crisis, otherwise they She risks damaging her reputation.

4- Mergers and acquisitions

Selling the company or merging it with another company may change the leadership and change the direction of the company, its goals and plans, and this may cause layoffs as well, in which case objective and clear criteria must be established for workers who will be laid off first, including criteria such as seniority and efficiency. (Houston Chronicle, numbers)

 

SOURCE : KWTOFFERINGS

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