Part 4/9:
Larger layoffs, however, are driven by precise calculations aimed at meeting specific cost-saving goals, such as saving a million dollars in a multinational corporation. These decisions are meticulously planned, considering departmental performance, market conditions, and operational efficiencies.
How Are Layoff Decisions Made?
A critical point made by the HR professional is that layoffs are generally not based on individual characteristics like age, gender, or years of employment. Instead, the primary factor is the job's role and the cost-benefit analysis:
- Departmental Performance: Departments that are underperforming or no longer align with the company's strategic priorities are more vulnerable.