More than 1/3 Of Companies Use Layoffs To Avoid Hurting Feelings
Ever wondered if those layoffs you’ve been hearing about are really just companies cutting costs?
Turns out, they might not be. ResumeBuilder.com surveyed 600 business leaders to uncover what’s really going on. Spoiler alert: It’s not all about the money.
Layoffs: Necessary or Not?
Here’s the kicker: Half of the business leaders surveyed admitted that a whopping 75% or more of their layoffs weren’t even necessary for cutting costs.
That’s right—those layoffs? They could have been avoided. In fact, 7% of leaders said none of their layoffs were needed to save money. So, what’s the deal?
Layoffs in Disguise
Let’s talk about the elephant in the room. When companies say they’re laying off employees, are they really just firing them under the radar? The answer is a resounding yes—80% of leaders confessed that they’ve disguised firings as layoffs. Why? It’s all about keeping up appearances. They want to maintain company morale, avoid those pesky wrongful termination claims, and give employees a softer landing with severance.
It’s like putting a bow on a box of bad news.
Here’s where it gets interesting: 31% of leaders said that performance is always a factor when deciding who to lay off. But for most, it’s a bit more flexible. Over half of the leaders admitted that performance often or sometimes plays a role in their layoff decisions. So, if you’re wondering whether poor performance can lead to layoffs, the answer is a solid “maybe.”
Why don’t companies just come out and say they’re firing someone? The number one reason is to keep morale high. No one wants to work at a place that’s known for firing people left and right. Plus, there’s the legal stuff—59% of leaders said they want to avoid wrongful termination claims. And let’s be real, 38% admitted they just don’t want to hurt the employee’s feelings. Awkward!
ResumeBuilder’s Chief Career Advisor, Stacie Haller, has a solution: Train managers better. According to Haller, younger managers might see layoffs as an easier option because it dodges the legal complications that come with firing someone. But this avoidance is eroding trust and creating a workforce that’s always looking over their shoulder.
The Bottom Line
So, next time you hear about a round of layoffs, take it with a grain of salt. It might not be about the company tightening its belt—it could just be a well-disguised firing spree.
