As the economy remains uncertain, many companies are needing to restructure their businesses and alter their labor forces. Even large and profitable companies are needing to re-engineer their businesses to battle inflation. In the first half of 2022, major companies such as Peloton, Carvana, and Netflix laid off thousands of workers. Even companies that turned a profit—45 of the top 50 companies were in the black—held layoffs this year with at least 27 of the 50 largest firms collectively cutting more than 100,000 workers, according to an analysis done by The Washington Post.
Many companies minimize the immediate and long-term effects of cutting people. As Wharton’s Business Journal says, “Employers also often underestimate the cost of layoffs in immediate financial terms, as well as in the lingering burden it places on remaining resources—both financially and emotionally…. The toll of layoffs is high. In many industries, layoffs beget lower productivity and profits.”
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