Human Resources MagazineHuman Resources Magazine

    Subscribe to Updates

    Get the latest Human Resources news and updates from around the world.

    What's Hot

    In-work poverty grew by 1.5 million since 2010

    March 24, 2023

    Just Eat employees forced to take up gig economy model

    March 24, 2023

    Remote working causes communication gap between managers and employees

    March 23, 2023
    Facebook Twitter Instagram
    • Advertise
    • Privacy Policy
    • Terms
    • Contact
    Facebook Twitter Instagram
    Friday, March 24
    Human Resources MagazineHuman Resources Magazine
    Demo
    • Home
    • News
    • Boardroom
    • HR Careers
    • Leadership
    • Human Capital
    • Recruitment
    • HR Software
    • Culture
    • Tech
    Human Resources MagazineHuman Resources Magazine
    Home » Layoff alternatives called for as tech sector redundancies hit 200,000
    News

    Layoff alternatives called for as tech sector redundancies hit 200,000

    January 24, 2023No Comments3 Mins Read
    Facebook Twitter LinkedIn Telegram Pinterest Tumblr
    Share
    Facebook Twitter LinkedIn Pinterest Email


    With Google, Microsoft and Spotify the latest technology companies to announce redundancy plans, HR and legal experts are calling on businesses to consider other options and good processes.

    Since the start of 2022, redundancy tracker layoffs.fyi has reported over 210,000 technology sector layoffs made, 55,000 of which were in January 2023 alone.

    This includes 6% of the workforce at Google, as well as redundancies at WeWork and 600 jobs to be cut at Spotify announced just this week.


    HR needs to prepare for further sackings in 2023

    Recession fears might worsen talent shortage, says REC

    Hot topic: Do you need to fire staff to take a business in a new direction?


    Despite uncertain economic outlooks and falling share prices cited as reasons for mass layoffs Rachel Suff, senior policy advisor at the CIPD, said it is crucial to consider alternatives.

    Speaking to HR magazine, she said: “In the UK, an employer must properly consider alternatives to avoid redundancy, such as redeployment or wage flexibility.

    “Redundancy should always be a very last resort, but if the employer has no choice, they must follow a fair and legal procedure according to country-specific legislation.”

    Different pieces of research show that layoffs do not always benefit company productivity, share price or profitability.

    In fact, a 2005 Academy of Management Executive journal article stated that companies that downsized in the face of recession remained less profitable overall.

    Research by Peter Capelli, director at Wharton’s Centre for Human Resources, found layoffs offered nothing but a short-term accounting fix.

    Business leaders have not always gone down the layoff route, either.

    Satoru Iwata, ex-CEO at Nintendo said that he disliked redundancies as a financial fix as they impact employee morale and creativity.

    If a company does decide to make layoffs, Suff said businesses should be clear in communication around redundancies and offer practical and wellbeing support, such as off-boarding services.

    She added: “It’s also important to train and support line managers to have empathetic conversations and listen to concerns, as they are likely to be the first point of contact for those at risk of redundancy.”

    Samantha Owens, employment law solicitor at Harper James said mass layoffs require consultation with employee representatives and can result in financial and brand damage if handled incorrectly.

    She said: “Dismissing employees is never easy, especially when you may have known and worked with them for quite some time. To help you get through this, good planning is absolutely essential.

    “Whilst often a business needs quick results, the speed of the process needs to be balanced with the rules on collective consultation and having the time to fairly consult. Getting that balance right is key to a fair process.

    “Being sensitive, measured and calm in your approach will also pay dividends.”

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Articles

    In-work poverty grew by 1.5 million since 2010

    March 24, 2023

    Banker awarded £300k over sex and maternity discrimination

    March 23, 2023

    Line managers able to spot signs of poor mental health

    March 21, 2023

    Single mothers missing £852 million in pension contributions

    March 20, 2023

    Woman awarded £19k after sexual harassment at Christmas party

    March 20, 2023

    Cost of living crisis has changed culture in SMEs

    March 17, 2023
    Add A Comment

    Leave A Reply Cancel Reply

    Don't Miss
    Recruitment

    Just Eat employees forced to take up gig economy model

    By Press RoomMarch 24, 2023

    Takeaway delivery company Just Eat has announced it will be reorganising jobs in the…

    Remote working causes communication gap between managers and employees

    March 23, 2023

    Banker awarded £300k over sex and maternity discrimination

    March 23, 2023

    Ikea signs up to EHRC supervision after complaint

    March 23, 2023

    Subscribe to Updates

    Get the latest Human Resources news and updates from around the world.

    Our Picks

    Line managers are the real guardians of company culture – why aren’t leaders acting on it?

    March 23, 2023

    Woke workplaces causing senior employees to leave organisations

    March 22, 2023

    Fit notes for sick employees hit record high

    March 22, 2023

    Line managers able to spot signs of poor mental health

    March 21, 2023
    About Us
    About Us

    Human Resources Magazine is a dedicated news portal about Human Resources and all that matters to emplyees and leaders in the business section.

    Our Picks

    In-work poverty grew by 1.5 million since 2010

    March 24, 2023

    Just Eat employees forced to take up gig economy model

    March 24, 2023

    Remote working causes communication gap between managers and employees

    March 23, 2023
    Trending Now

    Outstanding balance: why HR must learn to be sure-footed on the change curve (part one)

    February 15, 2023

    Government postpones centralised pensions dashboard

    March 6, 2023

    Chancellor’s UK Silicon Valley vision must get serious about skills

    January 30, 2023
    Facebook Twitter Instagram Pinterest
    • Home
    • Privacy Policy
    • Terms and Conditions
    • Contact
    © 2023 Human Resources Magazine. All rights reserved.

    Type above and press Enter to search. Press Esc to cancel.