The Impact of Layoffs

Sandra J. Sucher; David  Rosales; Elana  Green

Supplement | HBS Case Collection | November 2011 (Revised January 2014)

The Impact of Layoffs

by Sandra J. Sucher, David Rosales and Elana Green

Abstract

In video interviews, employees who have been laid off describe their experiences and the effects that the layoff has had on their careers, families, and personal lives.

Keywords: Job Cuts and Outsourcing;

Language: English

Format: Video

3392 length of video

Purchase

Citation:

Sucher, Sandra J., David Rosales, and Elana Green. "The Impact of Layoffs." Harvard Business School Video Supplement 612-702, November 2011. (Revised January 2014.)

Article | Harvard Business Review | May–June 2018

Layoffs That Don't Break Your Company: Better Approaches to Workforce Transition

Sandra J. Sucher and Shalene Gupta

Today layoffs have become companies’ default response to the challenges created by advances in technology and global competition. Yet research shows that job cuts rarely help senior leaders achieve their goals. Too often, they’re done for short-term gain, but the cost savings are overshadowed by bad publicity, loss of knowledge, weakened engagement, higher voluntary turnover, and lower innovation, which hurt profits in the long run. This article looks at better ways to handle changing workforce needs that make sparing use of staff reductions and ensure that if they do happen, the process feels fair and the affected parties have a soft landing. Most successful approaches begin with a philosophy that spells out a firm’s commitments and priorities, establish methods for exploring layoff alternatives (such as furloughs, retraining, and reassignments), and determine options for three scenarios: a healthy present, short-term volatility, and an uncertain future. As firms like AT&T, Michelin, Honeywell, and Nokia have learned, thoughtful planning helps organizations address workforce transitions and cope with a shifting economic landscape far better than layoffs do.

Keywords: Job Cuts and Outsourcing; Organizational Change and Adaptation; Employees; Transition; Strategic Planning;

Citation:

Sucher, Sandra J., and Shalene Gupta. "Layoffs That Don't Break Your Company: Better Approaches to Workforce Transition." Harvard Business Review 96, no. 3 (May–June 2018): 122–129. View Details

Cite View Details Find at Harvard Register to Read