Are Employees Disposable?

Abstract

People being laid off in big numbers by companies has become a trend. The economic slowdown globally and the severe financial impact due to the recent COVID-19 pandemic have compelled organizations to mass layoffs. Analyzing the transient and long-term impact of layoffs on organizations and the affected employees is a matter of utmost concern. This chapter aims to provide insights into data-driven layoff decisions, which must be the best basis for layoffs. This chapter focuses on how random layoffs affect current and laid-off workers' levels of trust. It talks about the financial implications vis-a-vis the cost of recruiting and training new employees. Additionally, it sheds some insight on intangible elements like the loss of knowledge that the laid-off worker accrued over the years as well as the erosion of trust experienced by both current and laid-off workers.