03-22-2020, 02:29 PM
As someone who has had to make cuts in the past at a business I own, I say layoffs.
The earlier it is done, the more generous the severance package can be. Unemployed workers can get unemployment insurance and find a new job.
A lot of it depends on the specifics, of course. A laid off sales clerk making $15/hr may be able to get a job at a grocery store paying the same.
If it’s a law firm and workers are making $200-$500k, I say a graduated paycut. There are industries where it’d be hard to get a new job and it’d be more important to try to avoid layoffs in those cases. Or what if it’s a small town with very few employers.
The earlier it is done, the more generous the severance package can be. Unemployed workers can get unemployment insurance and find a new job.
A lot of it depends on the specifics, of course. A laid off sales clerk making $15/hr may be able to get a job at a grocery store paying the same.
If it’s a law firm and workers are making $200-$500k, I say a graduated paycut. There are industries where it’d be hard to get a new job and it’d be more important to try to avoid layoffs in those cases. Or what if it’s a small town with very few employers.