Why do companies lay off workers? When times get tough, it’s often hard to see the logic in downsizing decisions, but most companies do have a set strategy in place. Understanding why companies lay off certain workers and not others can sometimes help you to head off being one of the casualties.
Here are some of the most common reasons companies lay off workers:
- Departments become obsolete. If you work in a niche within the company that no longer exists at comparable organizations, you may want to consider a transfer to a more needed department.
- Departments become unprofitable. If your specific job supports a portion of the company that is losing money, you are more vulnerable than a person working in a profitable department.
- You’re brand new or you’re nearing retirement. Companies often pare the newest or oldest workers first. Workers near retirement are sometimes offered incentives.
- Your performance is less than stellar. Performance-based layoff decisions are common. If you’re not great at what you do, you might want to try harder.
Sometimes no matter what you or don’t do you can still be the victim of a lay off. Companies lay off workers for lots of reasons, but not all of them are reasons you can control. If the company itself is losing money, you may not be able to save your job no matter what you try.
Knowing some of the more common reasons companies lay off workers can keep you on your toes and maximize your chances of staying employed. If you do lose your job anyway, at least you’ll know you did everything you could to keep it.
Click here for more information
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