During the COVID 19 pandemic several corporations and business establishments had resorted to mass layoff causing 20 million cut jobs in 2020. In the midst of economic shutdown during the pandemic, millions of Americans were laid off in batches. Are you familiar about layoff? Why does it occur? Read more to find out.
Here’s What They Don’t Tell You About Company Layoffs And Why They Are Conducted
Photo From: UNSW Newsroom
Here’s What They Don’t Tell You About Company Layoffs
In a report from Investopedia, layoff can be a permanent or temporary termination of employees conducted by the employer for reasons not related to their performance at work.
Establishments usually conduct layoffs to minimize cost that can be attributed to the decline in sales of specific company products, seasonal closure, or during economic crisis. Companies may offer benefits for affected employees such as severance pay or they may apply for unemployment compensation offered by the Federal government for workers who had lost their jobs.
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Layoff Vs Furlough
As mentioned, the termination could be temporary or permanent. Often times, employees will be rehired if the company status goes back to normal. According to The Street, many workers that were laid off during the pandemic were hired back by their employers.
Other term which may be used interchangeably with layoff is furlough. The two terms are very different. Furlough is when employees will have mandatory day off or less work time which will be unpaid. There will be no changes in the employee title during furlough, they are still employed but they now have reduced work time.
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