How to Manage Layoffs

Layoffs are mostly inevitable due to volatile market conditions, mergers, acquisitions and a more competitive global market. Layoffs are usually not due to the fault of the employees, but it should still be handled with care. The following steps will guide you through the layoff process.

1. Ascertain the scope of the problem 

Think about which departments will be affected. How long will the poor business conditions be expected to last? Are there other cost saving approaches to avoid possible layoffs? 

2. Temporary halt hiring efforts 

Hiring new employees is not just about the salary itself, but involves recruiting, training and much more. If layoffs are imminent, prepare to stop hiring for the time being.  

3. Determine who will be laid off 

Retain employees with the skills and experience that the company needs. The ones that are laid off are those who have been newly employed or without essential skill sets that the company requires. 

4. Inform the affected employees

There is bound to be speculation about who gets to stay or who will go. Once your list has been finalized and approved, set up a company-wide meeting or group meeting to announce the list of retrenched employees. 

5. Motivate the survivors 

For those employees who are lucky enough to stay on in the company, they may experience feelings of guilt, sadness and perhaps fear. It is important to schedule a meeting to meet with these survivors to assure them of your commitment to avoid further layoffs.