Handling Layoffs
Should Layoffs Be Your First Choice?
Other types of cost savings can offset the gains received from downsizing. There may be opportunities that emerge to expand your market, shore up your position in your market, or move into a new market even during a downturn. In this way, the gains can be felt without the pain; because we shouldn’t kid ourselves – personnel cutbacks are painful. Studies show that it is the most stressful action that managers have to take as part of their job description.
Avoid the Need for a Layoff
Determining the dollar spend that has to be cut in the organization is the first step. A re-look at the strategy has to be the next step. Questions need to be asked, like: Have all possible future scenarios been explored? Are the strategic goals the right ones for the envisioned future? Has the budget been proportioned in alignment with the strategy? Where in the organization have results not been forthcoming, and why? Are there unexplored external opportunities to analyze and pursue? Has the current and potential customer interface been fully explored? Could there be new markets for the business?