LAYOFFLAYOFF

– – MEANING, REASON AND SURVIVALMEANING, REASON AND SURVIVAL

Presented by –

Sonuka Agarwal

Mitra Suman De

Neha Muraraka

Olivia Ghosh

MeaningMeaning

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...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 LayoffProportional representation for causes of Layoff

Six Stages of the Unemployment CycleSix Stages of the Unemployment Cycle

• Before the layoff  Before the layoff 

• The layoff  The layoff 

• Intensive job search  Intensive job search 

• Retraining  Retraining 

• Running out of benefits  Running out of benefits 

• Adjusting to a new job Adjusting to a new job 

Staying Off the Layoff ListStaying Off the Layoff List

• Keep an eye on the horizon Keep an eye on the horizon

• Avoid these pink slip-ups by nurturing Avoid these pink slip-ups by nurturing relationships with peers or subordinates relationships with peers or subordinates

• Show what you've done for them lately Show what you've done for them lately

• Capitalize on opportunities to avoid layoffsCapitalize on opportunities to avoid layoffs

• Be mentally prepared for that dreaded pink slipBe mentally prepared for that dreaded pink slip

Side-effects of LayoffSide-effects of Layoff for the for the CompanyCompany

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 Benefits of long-term employment relationshipsrelationships

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 layoffAlternatives 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 LayoffSide-effects of Layoff to the employee 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 LayoffSurviving 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 bluesHave 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 RecessionLayoffs 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 After 9/11, unemployment rate increased .7% Rose rate increased .7% Rose from 4.0% in 2000, to from 4.0% in 2000, to 4.7% in 20014.7% in 2001

Following year, rate Following year, rate increased 1.1% to a high increased 1.1% to a high 5.8% (highest peak point 5.8% (highest peak point in 7 yrs) in 7 yrs)

8.4 million unemployed 8.4 million unemployed =1.4 million increase since =1.4 million increase since 2000.2000.

Nokia laidNokia laid off around off around 600 600 employeesemployees

Boohoo for YahooBoohoo for Yahoo Boohoo for YahooBoohoo for Yahoo

Nortels has lost its networkNortels has lost its network

Dell dumps nearly 9000 peopleDell dumps nearly 9000 people

AMD lays off 500 staff AMD lays off 500 staff

as financial problems continueas financial problems continue

AT&T lets loose managersAT&T lets loose managers

Cisco cuts jobs in TexasCisco cuts jobs in Texas

TI feels effects of mobile phone

TI feels effects of mobile phone sales slowdownsales slowdown

Sun reorganizes, cuts upto Sun reorganizes, cuts upto 18% of its workforce18% of its workforce

THANK YOUTHANK YOU