CAREER TIP..LAYOFFS

The Anatomy of Layoffs

WHAT ARE LAYOFFS?

When companies discharge employees either temporarily or permanently because they have no money to pay them or there is no work for them. The term is also known variously as downsizing, redundancy, right-sizing, workforce optimisation and redeployment. Several companies, banks and financial institutions across the world resorted to layoffs during the slowdown after the collapse of Lehman Brothers in September 2008. In India, the term became more familiar during late 2008 and early 2009.

ARE THERE ANY WARNING SIGNS BEFORE JOBS ARE SHED?

Layoffs are a function of business sentiment. So job losses happen during slowdowns, which are usually preceded by phases of high inflation. During a slowdown, job markets tighten up as entities go on austerity drives to lower their administrative and other costs. Generally, the next phase of critical action deals with rightsizing initiatives. Layoffs are imminent at this stage.

IS THERE A WAY TO PRE-EMPT AND, THUS, AVOID JOB LOSS?

Sometimes organisations resort to layoffs as a natural reaction to slowdown. But instead of such knee-jerk measures, there are many other preventive steps they can take. Proper work-force planning, continuous focus on cost control, multiskilling and creating a positively enabling work culture are some of the ways in which organisations can plan ahead of time so that they do not have to downsize and lay off people during a downturn.

HOW CAN ONE COPE?

Craft a nice resume, circulate it in your professional network and approach headhunters which deal in your specialisation or in your target sectors. Do not hide the 'pink-slip' fact from your near family. Share it with them so that they can provide you emotional support.

HOW DOES ONE PREPARE FOR A NEW CAREER?

Employees should reflect on their skillset and be clear about their competencies. Telecom and financial services sectors in India have experienced layoffs and 'workforce deployment' in recent months. If certain sectors are not doing well, look for similar options. Those in financial services can explore small and medium enterprises and retail. Those from telecoms can look at anything that can connect B2C -- social network, e-commerce, technology companies. Approach the principals and entities who would see close synergy with these profiles and start informal discussions with potential employers or interested parties. Continuous skilling and learning is recommended. There is a need to be entrepreneurial so that in every change one finds newer opportunities and value propositions.
ET8NOV11