Article

Debunking Layoff Myths

Debunking Layoff Myths

Popular wisdom says layoffs are the reflex response for most businesses when the economy weakens.

  • min read

Article

Debunking Layoff Myths
en

Popular wisdom says layoffs are the reflex response for most businesses when the economy weakens. But Bain & Company's year-long analysis of layoffs at S&P 500 companies proves that wisdom wrong. The results debunk four myths about downsizing. They reveal that: not all companies go into automatic layoff mode at the first hint of downturn; big job losses can actually hurt stock prices because they can invoke greater costs than benefits; shareholders can tell "good" job cuts from "bad"; and "binge and purge" employment practices are a flawed response to economic ups and downs.

 Download PDF

Tags

Ready to talk?

We work with ambitious leaders who want to define the future, not hide from it. Together, we achieve extraordinary outcomes.