Chris Gaffney writes an article for Supply Chain Brain on how employers can best conduct layoffs. He also gives tips for how employees can avoid being laid off.
Layoffs have been the primary cost-cutting tactic for corporations since the 1980s. Yet those force reductions have also resulted in costs that are either underestimated or not included in executive decisions.
Layoffs occur in times of stress, so it’s understandable that the impact on remaining employees’ productivity and engagement would not be top of mind. The question is how to ensure that labor costs can be controlled without sacrificing growth and capacity.
Supply chain-centric companies are uniquely positioned to handle this challenge. Layoffs are typically a result of a supply-demand imbalance. Supply chains live and die by the quality of their integrated business planning (IBP) processes. We would hope these firms would detect shifts in demand better than the average employer, and take steps to shape capacity without having to make drastic changes on short notice.
In 2023, companies continue to monitor an uncertain economic climate. Those destined to succeed will enact reductions in force in a way that aligns with a growth mindset, while preserving company culture and engagement.