The Layoff « amandalinbrown

Anytime a company has to consider layoffs as a solution to financial troubles it causes displeasure among executives.  Although there are several options as far as selecting whom to layoff, no choice is easy and there is always going to be someone who is unhappy.  Of all the options available to Robin (first-in, first-out, rank and yank, last-in, first-out, 5% pay cut across the board) I am not sure which he should choose.  I definitely do not like the idea of last-in first-out.  Marzita made a good point in that if you are to cut the newest employees, you sacrifice talent with the newest ideas and education.  They keep a company from getting stagnant.  I do not think that this method would benefit Astrigo.

Ranking systems are never very accurate and so I do not think that rank and yank system of layoffs is smart either.  You can never encompass somebody's worth in a number value and to lay him off based on that number doesn't do good things for the company.  I think the best choice is either first-in first-out where they give an early retirement package for those who choose, or a pay cut across the board.  With the early retirement package you can first begin with those who want to retire and could potentially avoid cutting employees who wish to continue working.  This may be a bit more expensive but that's what the reserve money in the bank is for.  The company wide pay cut options is beneficial because it keeps a team mentality in that everyone sacrifices for the company.  This way also allows the new hires to remain with the company.

If I had to chose a plan of action, I would start with the volunteer early retirees and move into pay cuts if that doesn't yield enough savings.