Layoffs - Are they the easy way out?

I was reading about layoffs at a public media company. For this particular company, layoffs are commonplace. They've been a common tool...a regular part of the corporate landscape for nearly 30 years. The human toll created by the constant cycle of hiring and layoffs has mounted over the years. Is this really an effective management tool or is this a sign of poor management? Hiring is done in anticipation of funding from viewers, listeners, corporations and foundations. When the funding doesn't reach anticipated goals, shortfalls result and layoffs follow.

Recently I ran across this article which states, "Layoffs are often a sign of failure by top executives to properly manage a business and forecast needs — and failure of board members to ensure that the right management is in place."


Why Layoffs Are for Lazy Corporate Overseers


Other highlights...

• Compensation insulates most executives from layoff shocks. 
• Layoffs often demolish an employee’s social circle and identity.
• CEO's have come to think of certain employees as deadwood.
• CEOs weren’t concerned with employee hardship, layoffs don’t bother board members much either.
• Boards show a lack of accountability, because rather than ding management for these failures, boards reward management for these missteps.

In reality there is ample evidence to suggest that companies that constantly layoff staff are not really positioning themsleves for a recovery. They are actually in trouble. A recent paper published by the Wharton School at the University of Pennsylvania says that instead of laying off companies should be investing in people and innovation. That's not going to happen if a company hires an innovator and then eight months later lays that person off.

According to the article companies can offer early retirement, slowing down hiring and retraining workers.

For more go to  How Layoffs Hurt Companies.