Are layoffs just a fact of life? Or are they avoidable? Sure, few managers have a say in whether their company will lay off employees, but there are some things you can do to reduce the likelihood:
- Watch out for complexity. Organizations have a tendency to grow, adding unnecessary layers, positions, and locations. Whenever possible, advocate for keeping things structurally simple.
- Phase out products and services. Outdated products and services can eat up costs and require expensive infrastructure. Eliminate the ones that have outlived their value.
- Concentrate on the future. Focusing on short-term revenues can build up costs (and people) that provide results today but cannot be sustained in the long-term. Don't just invest in current operations.
Source: Source: Harvard Business Review - Today's Management Tip was adapted from "You Can Prevent Layoffs" by Ron Ashkenas.