Welcome to HR 101. Class is now in session. Today’s discussion is all about the modern-ish history of mass layoffs in the US.
The history. Mass layoffs are those that affect at least 33% of total active workforce at a single company site and are not the result of a worksite closure, according to the Department of Labor. Mass layoffs, outside the context of an economic downturn, were rare, with less than 5% of US employers announcing layoffs in 1979, according to Bloomberg. In the 1980s, though, they became a more common strategy.
General Electric Chairman Jack Welch became known as a proponent of laying off employees “as a sign of corporate competitiveness,” according to Quartz, and between 1980 and 1985, he was responsible for eliminating one in four jobs across GE, earning him the nickname “Neutron Jack.” Other corporate executives followed suit.
Fast-forward. Layoffs have been making headlines this year, with tech and retail giants slashing their workforces. Snap, Amazon, and Google-parent Alphabet have all announced layoffs in the name of cutting costs, as have Walmart, Macy’s, and Wayfair.
Keep reading here.—AS
|