Why do companies typically choose to implement layoffs affecting numerous employees rather than considering salary reductions for top executives like the CEO?
In: Economics
One point I haven’t seen mentioned is that layoffs are also a way for companies to get rid of lower performing (or poorly positioned politically) employees without going through the rigorous and lengthy HR processes necessary to do so normally. A performance improvement plan takes a ton of work, coordination, and documentation to protect the company from a wrongful termination lawsuit where layoffs avoid all of that.
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