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Re Organization of Layoff Issues

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Re-organization and Layoff- Issue and Problem Identification

May 25, 2015

Re-organization and Layoff- Issue and Problem Identification
Layoffs can come about in a number of ways, but the form of layoffs that policymakers have shown they are most concerned about occurs when businesses displace employees. Layoffs are the forward and backward movement within the business cycle, but involuntary job loss is ever-present because firms remove workers for reasons other than temporarily weak demand of goods and services. Employers also conduct layoffs for reasons specific to them or their industry (Levine, 2005).
According to Linda Levine, a specialist in labor economics, “the term "downsizing" is describing a practice that became prevalent during the 1980s of typically "old economy" manufacturers restructuring their operations through large-scale layoffs to become more competitive in the global marketplace” (2005). Reorganizing work to improve competitive advantage has since spread to "new economy" manufacturers and to firms in the service sector. It also includes more than downsizing, such as sending work to facilities within and outside U.S. borders. By definition, restructuring achieved through downsizing produces a net loss of jobs at companies. (Levine, 2005). The main issues are that employers don't consider an alternative solution to laying off employees, nor do they dismiss employees in an appropriate way. What can be done instead of a lay off? Has the decision making process been used properly to be sure this is the best and final decision for the company?

Ultimately, a company makes more money than it spends. Management can pull many different levers to achieve this. They are choosing the ready- made solution “reduce cost”. This is common to use to cut cost by getting rid of jobs. We too often see headlines on the news and online media reading

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