Understanding the New

Reality of Layoffs and

Helping Employees Find
Solutions to Cope up

Research By-
Hardik Vats , 2221117015
3rd Semester
M.Sc. In Hospitality Administration,
 Introduction
 In an era characterized by swift transformations, the concept of job
stability is undergoing a significant redefinition.
 As we examine the repercussions of economic shifts and disruptions
within industries, we uncover practical approaches for effectively
maneuvering through this evolving terrain.
 Conventional perceptions of job security are undergoing substantial
transformations as a result.
 Economic uncertainties and global crises are reshaping the dynamics of
employment, and the traditional model of lifelong employment with a
single company is becoming progressively scarce.
 Our journey begins by delving into the contemporary landscape of
layoffs in our dynamic world.
 Introduction
• A layoff refers to the temporary or permanent termination of
employment by an employer due to various reasons, such as economic
downturns, organizational restructuring, or other business-related
factors.
• Layoffs and downsizing decisions are often a result of economic
factors, such as declining sales, cash flow, or resources within an
organization.
• Automation and modern technology have greatly increased output and
productivity in developed economies, posing potential challenges to
certain job sectors.
• Layoff decisions can have severe negative consequences on both the
organization's business needs and the lives of affected employees.
 Review of Literature
• Google, Meta, Amazon and other tech companies have laid off more than 104,000
employees in the last year PUBLISHED WED, JAN 18, 2023 ,CNBC NEWS:
The tech industry has seen a string of layoffs in the face of uncertain economic
conditions.Meta announced a fresh round of cuts on Tuesday, impacting 10,000
employees. Layoffs come as digital advertisers are cutting back on spending and rising
inflation curbs consumer spending.
• Layoffs Are Painful. But You Can Communicate Them Compassionately.
by Laurie Tennant November 08, 2022 Harvard Business Review:
For all companies, planning thoughtful workforce change instead of automatically
resorting to layoffs is a better way to address the vicissitudes of technological
transformation and intensifying competition.
• What Companies Still Get Wrong About Layoffs by Sandra J. Sucher and
Marilyn Morgan Westner , December 08, 2022 ,Harvard Business Review
Research has long shown that layoffs have a detrimental effect on individuals and on
corporate performance. The short-term cost savings provided by a layoff are often
overshadowed by bad publicity, loss of knowledge, weakened engagement, higher
voluntary turnover, and lower innovation — all of which hurt profits in the long run.
 Objective

1.To analyze the reasons for layoffs and their effects on employees.

2.To identify coping strategies employed by employees post-layoffs.

3.To develop and test interventions to aid employees in coping with job loss.

4.To evaluate existing programs and propose improvements for helping

employees transition to new jobs.

 Locale
A comprehensive study was conducted, involving various stakeholders in
the Delhi NCR region. This encompassed engagement with corporate
offices in Delhi, gathering of insights from hospitality students and HR
professionals within the region. Perspectives were also sought from students
to understand how the viewpoint of the younger generation on layoffs.
Furthermore, engagement took place with educational institutions to gain
insights into their strategies for managing layoffs during the COVID-19
pandemic. Additionally, contact was made with employees who had been
laid off during the pandemic to gain firsthand perspectives.
 Statistics

Percentage of Workforce Being Laid Off in 2023

35%
30%
25%
20%
15%
10%
5%
0%
Up fy ify ro se tor er m Pal llo fy se ini on ce
ti p i ti r
il ck Spo ho Nu hou ina witt Zoo Pay Tw po inba em maz sfo
T S o G A ale
C S
l ub mb C S
C Co
Y Workforce Being Laid Off
Data taken from study done by Demand Sage
 Statistics

Layoff Data in past 2 decades

No. of employees laid off (Millions)
Series1

2020 2021 2022

2019
2016 2017 2018
2015
2012 2013 2014
2011
2008 2009 2010
2005 2006 2007
2004
2002 2003

23.6 24.3 23.7 23.7 22.3 23.5 25.4 27.5 22.6 22.1 22.2 21 21.1 21.8 21.2 21.6 21.8 21.8 41.7 17 15.4
 Results
Demographic Details

• The research data was gathered from a Male –Female Ratio

sample of 66 individuals comprising : No. of Females No. Of Males

27 females
39 males

41%
• All individuals included in the study
fell within the age range of 21 to 30
59%
years.
 Results
Segment wise questions and its result

1.How would you rate the impact of layoffs on employee morale? (1=Very
Poor ,5=Very Good)
The impact of layoffs
45% on employee morale
35%
25%
15%
Percentage

5%
1.Very 2.Poor 3.Neutral 4.Good 5.Very
Poor Good
The 0.136363 0.363636 0.227272 0.227272 0.045454
im- 63636363 36363636 72727272 72727272 54545454
pact 6 4 7 7 55
of
lay-
offs
on
em-
ploye
e
moral
e
Per- 0.153846 0.461538 0.230769 0.153846 0
cent- 15384615 46153846 23076923 15384615
age 4 2 1 4
of
Male
Per- 0.111111 0.185185 0.259259 0.333333 0.111111
cent- 11111111 18518518 25925925 33333333 11111111
age 1 5 9 3 1
of
Fe-
males
 Results
12. What is the financial and economic factors that contribute to layoffs in different
industries?
Males Females
Factors that contribute to layoffs in A. Impact of
different industries technology 7.7% 0%
B. Impact of
5% globalization 7.7% 11%
9% C. Market
A. Impact of technology competition 0.0% 11%
5%
B. Impact of globalization D. All of the
C. Market competition above 84.6% 78%
D. All of the above

As per the findings there are various

financial and economic factors that
contribute to layoffs in different industries
82% some of them: Impact of Technology,
Impact of globalization, Market
competition.
 Results
The Takeaway

 As layoffs appear to be an increasingly accepted fact of work life, perhaps it

would be best to implement public policies that help workers with the
transition from one job to the next.

 Job loss has adverse effects on workers’ short- and long-term employment
prospects, compensation, and even health.

 Organizations and policy makers should consider the labor-readjustment

programs used in other countries. When it comes to avoiding mass layoffs,
companies may need to use more aggressive and larger-scale thinking than
is currently the norm.
 References

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