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Layoffs Come Last

Layoffs Come Last

Gravity Payments

In our last post, we opened a dialogue about some critical considerations as we face our next recession. As a downturn becomes a greater certainty, we discuss the elephant in the room: company layoffs. Check out this installment of our Think Big video series.

It can be tempting to consider layoffs as a quick and surefire way to reduce expenses. However, doing so is often shortsighted - and introduces a slew of hidden consequences. In fact, after a layoff, survivors experience a 20% decline in job performance - and the companies that go through the layoff are twice as likely to file for bankruptcy.

There are many alternative cost reduction strategies that can turn layoffs into a last resort, not a first. In this video, I sit down with my colleague, Jeff Wester, to discuss:

  • The hidden long-term costs of laying people off
  • Other cost reduction strategies, including all the measures you should be taking before considering layoffs
  • How one company, Gravity Payments, found an innovative way to crowdsource an alternative solution to staff layoffs.
  • Other companies who found creative cost control measures to avoid layoffs - and won

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