In case of recession, why are most companies laying off many of their employees?
In India, reservation is a caste-based affirmative action policy. In layman's terms, it is the practice of reserving seats in government jobs and educational institutions, for specific groups of people. The system was established to elevate the highly neglected and deprived backward castes ( unpriviRead more
In India, reservation is a caste-based affirmative action policy. In layman’s terms, it is the practice of reserving seats in government jobs and educational institutions, for specific groups of people. The system was established to elevate the highly neglected and deprived backward castes ( unprivileged) to the same level as the upper castes.
Although the system boosts the self-esteem of people from different unprivileged groups and gives them a chance to showcase their talent, people from the general category have to take a back seat and watch their dreams get crushed.
In today’s society, even an above-average individual from a general category has very little chance of getting into a good government university because of all the reservations for the minor groups. No matter how skilled or talented an individual is, there is always a chance of him losing his seat to an undeserving candidate. This outlook can sometimes lead to self-doubts about one’s accomplishments, particularly for those who do not benefit from reservations and believe they must compete on a different level.
Therefore, to achieve true equality of opportunity, systemic inequalities must be addressed, which may necessitate policies such as reservations to ensure fair treatment.
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During a recession, companies lay off employees primarily to manage costs and ensure survival. Revenue drops as consumer spending decreases, prompting businesses to reduce expenses, and labor is one of the largest costs. Layoffs help immediately cut payroll expenses and preserve cash flow, which isRead more
During a recession, companies lay off employees primarily to manage costs and ensure survival. Revenue drops as consumer spending decreases, prompting businesses to reduce expenses, and labor is one of the largest costs. Layoffs help immediately cut payroll expenses and preserve cash flow, which is crucial during economic uncertainty.
With lower demand for products and services, companies need fewer employees. Aligning the workforce with reduced demand helps maintain operational efficiency. Additionally, recessions often trigger restructuring efforts to streamline operations and eliminate redundancies, further driving layoffs.
Publicly traded companies face investor pressure to maintain profitability and protect stock prices. Layoffs signal decisive cost management, reassuring investors about the company’s financial health. For some businesses, layoffs are essential to avoid bankruptcy, ensuring they can continue operations during the downturn.
While layoffs are common, they can harm employee morale, company reputation, and long-term performance. Some companies explore alternatives like reducing executive salaries, cutting non-essential expenses, or implementing temporary furloughs to mitigate these impacts. Ultimately, layoffs are a strategic move to balance immediate cost reduction with the goal of emerging stronger post-recession.
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