Employees are being laid off from various leading companies across the globe. In this article we will see what is the reason for this and what companies should do for the employees affected by the layoff.
Many of the world’s leading companies are laying off most of their employees due to the economic climate after the spread of the Corona virus. Due to this, the new generation of graduates and the middle class people are getting affected more and more. In this article, we will see what is the reason for this sudden layoff and what companies should do for the employees affected by the layoff.
The world’s leading companies to lay off employees
Recently, the world’s leading companies such as Twitter, Meta, Google, and Amazon have been laying off their employees in large numbers. Retail, consumer services, transportation, finance, food, medical, real estate, and education sectors also saw large layoffs.
Already Apple, Intel, Lyft, Qualcomm, Upstart, Vimeo, Adobe, H.P. It is noteworthy that companies like these have laid off a significant number of employees. On the one hand, economic recession and inflation are affecting the whole world, but on the other hand, technology companies cannot face the fact that they are laying off thousands of employees at the same time.
3 Top Reasons Experts Tell for Layoffs
Starting in the 100s and rising to thousands, the layoffs are like a sudden earthquake. Experts generally cite 3 reasons for this sudden layoff.
One is cost cutting.
Another is the decline in profits.
Finally, slack in employee performance.
These are said to be the main reasons. But, these vary from company to company. However, large companies with many investors rely on financial capitalists to provide the economy these days.
What should the company do to lay off employees?
In such an environment, when there is talk of an international recession, financial capitalists try to put pressure on the company. That pressure, in the first place, flows into employee layoffs. Next, moving on to overhead costs. However, experts also say that these same companies will resume full-scale hiring at lower salaries next year.
Experts who say that the new generation of graduates, the middle class and the common people are mostly affected by such layoffs, advise that if a company takes retrenchment measures, the company should devise legal plans to provide financial security for the laid off employees depending on its growth and profitability.
– J. Prakash