Why Layoffs Often Backfire and What Companies Can Do Instead

Summary

This article argues that layoffs are often counterproductive, failing to deliver the financial and strategic benefits leaders expect while damaging organizational culture, trust, and long-term performance. It explores the hidden costs of layoffs—including loss of institutional knowledge, decreased morale among remaining employees, and reputational harm—and offers alternative strategies companies can pursue instead, such as redeployment, reduced hours, pay cuts for executives, furloughs, and transparent communication.

Source

bskyWhy Layoffs Often Backfire and What Companies Can Do Insteadgreatergood.berkeley.edu