Questions about layoff culture, if anybody can answer them

[Ken Burch]

Last edited Sat Dec 1, 2012, 12:41 AM - Edit history (1)

(and as many answers as possible on these would be helpful)

1)Why do they always seem to break the news to their employees with no warning? Is there a reason they don't want these people to have a little time in advance to hustle up a replacement job, or is something else in play there? I doubt these concerns just wake up that very morning and say "shit, we have get rid of 10,000 people right NOW!".

2)Why do they so often seem to announce mass layoffs in December? Do they not know or care how cruel that is(especially in a country that is so ostentatiously "Christian&quot ? Why isn't it enough for them to have eleven OTHER months to lay people off in?

3)Why do so many financial institutions seem to DEMAND mass layoffs in exchange for maintaining their credit relationships with corporations?

[LiberalEsto]

1. My best guess is that the execs are sociopaths

and consequently have zero ability to put themselves in another person's place. I even wonder if some of them are sadists who enjoy other people's misery.

[JaneyVee]

2. They are sadists.

[coalition_unwilling]

8. Are you quoting or citing a published source? If so, can you provide a link

to it or a bibliographic reference for those who would like to dig a littler deeper?

[coalition_unwilling]

15. Oh, I think I mis-interepreted those parenthetical section thngies to mean

it was coming from a published source. I see what you're doing now. (Brain fart from senility brought on by encroaching old age

[Egalitarian Thug]

4. What AnotherMcIntosh said, plus the corrosive effect that the Wall Street casino has

had on virtually every business in America. That is, investors no longer invest in a company because they believe that the company is or will be consistently profitable and grow over time to capture a greater share of its respective market and thus provide a steady increase of the initial investment which may be sold at a profit at some later date.

The stock market today was turned into a giant roulette game with the nominal investors simply placing bets on a short term basis, and since the deregulation of the 90s and 00s, is now become a rigged roulette game for inside players to devour the last vestiges of little people's money.

The stock markets are now in charge and dictate how a company is run, and the stock markets love layoffs because they almost always cause a predictable short term bump in the stock price.

[Broken_Hero]

5. No idea,

but my best guess to your number 2 is that they do it in December because its the end of their Calendar Year and they try to do everything possible to make their last quarter seem more profitable. Thats my best jab on number 2. As for 1, I have no idea but in my experience its sadistic/power control management. As for 3, no idea.

[yewberry]

6. Blue-collar systems

1) Not true with union hall call-outs. The call-out is done when it's done. Workers see the end of the work coming.

2) Not really the case with the employee groups I know. No, employers don't have any interest in curbing December layoffs. The calendar in my industry, though, is that workers don't often face December layoffs. Winter is layup season-- the busy season for marine industries.

3) Dunno. Few mass layoffs in the marine maintenance and engineering fields. But I work within a state agency-- we don't really deal with financial institutions. Heck, we're broke already.

[Ken Burch]

9. Are you with the Alaska Marine Highway System?

I'm a steward for them, and what you describe sounds very similar to things with us.

(If not, are you a member of the Inlandboatman's Union Of The Pacific? That's the ferryboat workers union on the West Coast).

[yewberry]

17. Nope.

And also no, not a member of IBU. I'm going to PM you.

[Ken Burch]

19. Got your pm.

Thanks.

[Ilsa]

7. Number 1 only:

There could be issues of theft or disgruntled employees stealing or messing with systems for revenge.

For example, people who work in IT are usually told, and someone watches them empty their desks and escorts them out of the building. Their passwords are revoked the morning before they are told anything. Keys are turned in before they get copies made, etc.

[CK_John]

11. It's accounting, nothing personal. Fiscal years usually run to year end.

If your're still on the books after Jan 1, you remain for the whole year taking up space and resources.

[slackmaster]

12. Number 1 is simple - Many people will bolt when they hear the news, so as to get a good position...

...for finding another job before the market gets flooded with applicants from the layoff.

BTW - Federal law requires extra notice in some situations. See http://www.dol.gov/compliance/laws/comp-warn.htm#.ULoSO2f5W70

[Nikia]

21. No company wants most of their employees or key positions to quit before they are done with them

Some people are also rather unmotivated when they find out their company will soon get rid of them, especially if their company or location is closing anyway.

[Recursion]

13. Three attempts at answers

1) So that the workers don't quit "too early" or vandalize/loot the place (that's management's job). Also if they're in trouble they don't want that publicly known.

2) If your fiscal year is the calendar year, you start the next year with fewer employees on the books which has implications for your taxes and statements

3) Labor costs are one of the few inputs that management has direct control over in many situations

[elehhhhna]

14. Here's a better way --

One of my clients is a small oil and gas exploration co.here in Houston. The CEO needs to let a few people go as they transition from explo. to production. I am his favorite (pretty much exxclusive) headhunter. He is waiting until after the holidays, he is paying each of them ONE YEAR of severance, covering their health ins. for 6 months, and he's referring them to me so I can help them find new positions. He's brilliant, he's ethical, and he's a hell of a leader. He's also Canadian, FWIW.

[Ken Burch]

18. That's how a decent society would handle such things. n/t.

[elehhhhna]

20. as i said, he's canadian

probably explains it

[FarCenter]

16. Due to labor laws, regulations and agreements, it is far safer to shut down a business unit

Firing people on a one-by-one basis is difficult and risky, since it opens management up to all sorts of legal challenges. Closing down a line of business, terminating a product, or closing a site is much safer.

Thus, employees are terminated in groups, while they are hired one-by-one.

You don't hear in the media about hirings, only about group terminations.