Mass Layoffs Research Articles

Mass layoffs at BYJU’S – founder’s dilemma

Learning outcomes This case study provides students/managers an opportunity to learn about the following: to infer the challenges involved in the downsizing of employees; to asses and evaluate BYJU’S organizational culture; and to determine the impact of workplace toxicity. Case overview/synopsis The focus of this case is the controversy faced by BYJU’S due to its mass layoffs and toxic work culture. This case discusses the CEO’s dilemma in resolving the controversy. Two rounds of mass layoffs at BYJU’S are discussed in detail. The industrial dispute filed by Employees Union against BYJU’S accusing it of denying due compensation to laid-off employees is also discussed. This case consists of a section explaining the toxic work culture at BYJU’S, which is supported by employee complaints. The CEO’s justification and apology have been illustrated in this case. The case ends with a closing dilemma and challenges faced by the CEO. Complexity academic level The case is best suited for undergraduate students studying Human Resources Management subjects in Commerce and Business Management streams. The authors suggest that the instructor inform students to read the case before attending the 90-min session. It can be executed in the classroom after discussing the theoretical concepts. Supplementary material Teaching notes are available for educators only. Subject code CSS 6: Human Resource Management.

A Constructivist Leader Avoids the Bankruptcy of an Emblematic Company and the Deepening of Deindustrialization in Europe: Lessons From a Case Study

Confronting a complex reality always causes a mixture of shock that continues, even after acceptance. The moment Bertrand Martin takes over C.M.M. Sulzer-France in 1984, the company is in the disaster situation. With the Naval Construction crisis, the order book quickly ran out, the stock warehouses were full, and people's morale was at a level close to exhaustion. Everyone expected either closure or, at the very least, a massive collective dismissal. B. Martin's position surprises everyone and everything, equivalent to a real electroshock, according to his own expression. In a staff meeting, called by him to “say what he came for”, B. Martin (or a member of his management team) holds back and does not even formulate a word that evokes “solutions”. Faced with the dramatic events that the company was experiencing, B. Martin says he is at this staff meeting to hear… solutions, as an alternative to closure or massive layoffs. Rarely have words like these been heard in companies in a country accustomed to a hierarchical organizational culture and job cuts in response to crises. Voluntary problem-solving groups, involving more than 300 people from all hierarchical levels, developed a plan with 450 measures. The workers' assembly votes on the plan unanimously. In a short time, the company changes radically and comes out of the red, accepting a difficult challenge, associated with an order for two large power plant engines, for China, previously considered unrealizable. The dynamics introduced into the company become proverbial with unusual repercussions throughout France. The case seems to fit more into the order of counter factuality than a plausible situation. Four orders of reasons seem to have contributed to the novelty of the director general's communication: (1) A general director who, instead of starting by presenting a speech of hope (to create a climate of positive expectation), as is customary to do, exposes the naked reality for everyone to observe. (2) A leader who says he has no solutions but was available to listen to the solutions to be found within the organization. (3) An entrepreneur who knew how to listen to himself and listen to what he would call a “crazy dream” that mobilized the talents of each subject. (4) A people engineer who knew how to intuit, as an organizational reference, the thirst for collectively shared change and which would allow 70% of all four hundred proposals from the working groups to be carried out in six months. The constructivist transformational leadership of this leader, unlikely given the context, Bertrand Martin, made the difference, in a situation where “hope seemed to have disappeared”, in the words of Dante, in the “Divine Comedy” – sequel to Inferno.

“None of Us Wanted to be at This Party, But What a Guest List”: How Technology Workers Position Themselves on LinkedIn Following Layoffs

Mass layoffs offer a unique and understudied context to understand how affected workers communicate the involuntary, collective nature of their organizational exit. In this study, we explored the communicative strategies that workers affected by mass layoffs in the technology industry used to engage in impression management by analyzing LinkedIn posts ( N = 362). Our findings showed that workers engaged in proactive impression management by drawing on targets of identification (such as positioning themselves within the collective group of affected workers and highlighting their former membership with prestigious companies) to minimize blame for their layoff and signal their employability. Our findings also suggest that, amid environmental shock and in digital environments, individuals enact remarkably similar communicative strategies to one another, suggesting that this type of organizational exit announcement is a distinct emergent genre for impression management. We discuss our findings’ implications for our understanding of organizational exit and work-related online impression management behavior.

Book Review: Wall Street’s War on Workers: How Mass Layoffs and Greed are Destroying the Working Class and What to Do About It by Leopold, Les

Book Review: <i>Wall Street’s War on Workers: How Mass Layoffs and Greed are Destroying the Working Class and What to Do About It</i> by Leopold, Les

The Effect of Job Insecurity on Turnover Intention among Employees at Startup Companies in Jabodetabek

Winter tech refers to a significant decline in business activity and investment, leading to mass layoffs, bankupties, and uncertainty or instability. One of the impact of an unstable work environment is the increased level of job insecurity, which can influence employees intention to leave their jobs, known as turnover intention. Therefore, this study aims to identify the influence of job insecurity on employees turnover intention amid this phenomenon. The study employs a quantitative approach with a questionnaire as the data collection instrument and uses sample regression analysis to examine the influence between the two variables. The data collection technique used is purposive sampling, with respondents consisting of contract and permanent employees at company X, totaling 55 employees. The results of this study show a positive influence of job insecurity on employees turnover intention at company X by 34.9% with the remaining 65.1% influenced by other variables not tested in this study. In other words, if job insecurity increases, the intention to leave the job will increase, and conversely, if job insecurity dreases, the intention to leave the job will also decrease.

Pengaruh Entrepreneurial Mindset dan Entrepreneurial Competence dalam Keberhasilan Usaha Kuliner Bakso Salatiga

The Covid-19 pandemic phenomenon has affected the world economy, especially the economic conditions in Indonesia. This pandemic has caused an increase in unemployment rates due to mass layoffs in order to reduce employee costs by companies during the pandemic. The micro, small and medium enterprise (MSME) sector is one of the responsibilities that society plays in economic growth. An important factor in Indonesia's economic expansion is the MSME sector. Ideas, opportunities, and business people or entrepreneurs are key components of the success of MSMEs or companies. This research aims to identify the relationship between entrepreneurial competence and business success, as well as the impact of entrepreneurial mentality. The research results found that simultaneously and partially the entrepreneurial mindset and entrepreneurial competence variables had a positive effect on the success of profits in the Salatiga Meatball Culinary business.

­­Work Boots to Combat Boots: Mass Layoffs and Military Enlistment

­­Work Boots to Combat Boots: Mass Layoffs and Military Enlistment

Making Sense of Emotions in Massive Layoffs: The Case of #techlayoffs

Making Sense of Emotions in Massive Layoffs: The Case of #techlayoffs

Pandemic layoffs and the role of stay-at-home orders

We compile a novel high-frequency, detailed geographic dataset on mass layoffs from U.S. state labor departments. Using recent advances in difference-in-difference estimation with staggered treatment, we find that locally-mandated stay-at-home orders issued March 16–22, 2020 triggered mass layoffs equal to half a percent of the population in just one week. Our findings contribute to explanations for why job loss in 2020 was catastrophic yet temporary.

Job insecurity and fertility: Evidence from massive lay-offs in urban China

We exploit a staggered reform of state-owned enterprises (SOEs) in the late 1990s in China to provide plausibly causal evidence that job insecurity has a first-order impact on fertility. Prior to the reform, unemployment rates were low and job security for SOE workers paralleled that of government employees. Post-reform, numerous SOE employees were laid off and their contracts were no longer permanent, but government employees continued to enjoy high levels of job security. We find that the reform caused SOE employees who retained their positions to delay having their first child by 0.718 years. The spillover effects are sizable: employees in the untargeted private sector delay starting a family by 0.387 years. Despite the importance of family lineage in China at the time, our findings indicate that the fertility response transcended mere birth timing adjustments, and decreased couples’ likelihood of having children. Specifically, the reform initially reduced the number of births by 8.4 % in the short run and had a more pronounced long-term effect on completed fertility at age 45.

The Paradox of Job Retention Schemes: A Latent Growth Curve Modeling Approach to Immediate and Prolonged Effects of Short-Time Work on Job Insecurity and Employee Well-Being

Many countries rely on short-time work to prevent mass layoffs in economic crises. Despite serving to protect jobs, short-time work may trigger job insecurity perceptions, which may impair employee well-being. Moreover, past experiences of unemployment may increase susceptibility to job insecurity in response to short-time work. Drawing on Conservation of Resources (COR) Theory, Appraisal Theory and temporal stressor-strain models, this study investigates effects of short-time work on the development of job satisfaction, life satisfaction and affective well-being via perceived job insecurity across 6 years, considering previous unemployment as a moderator. We used propensity score matching to account for selectivity into short-time work and calculated latent growth curve models with N = 1211 employees in Germany (619 affected by short-time work, 592 controls). Short-time work predicted higher levels and an immediate increase in job insecurity, followed by a decrease over time. Both levels and changes in job insecurity were associated with levels and changes in well-being. Indirect effects of short-time work on well-being via job insecurity persisted 2 years after short-time work. We found no difference between previously unemployed respondents and others in their reactions to short-time work. The findings support COR theory and a prolonged stress-reaction model, showing lingering effects on well-being via job insecurity even after short-time work ends. The study supports short-time work as an antecedent of job insecurity and reveals temporal dynamics between job insecurity, its antecedents and outcomes over time. When implementing short-time work, employers should aim to mitigate concerns about job security to protect employee well-being.

Short-term pain for long-term gain? A longitudinal meta-analysis of downsizing-financial performance relationships

IntroductionDownsizing, and the mass layoff upheavals that ensue, has been euphemistically referred to as a short-term pain, long-term gain strategy. But is that so? Do its financial outcomes over time justify the short-run harm? And, to what extent has its adoption been driven by economic or social rationales over time?MethodsTo examine these questions, we conducted the most comprehensive meta-analysis on downsizing-financial performance relationships to date, summarizing a total of 905 effect sizes. Using a new meta-analytic method multi-level longitudinal meta-analysis (MLLMA) we analyze temporal dimensions of these relationships.ResultsResults for downsizing adoption suggest shifting rationales over time, from a defensive response to decline in the 1980s, to a socially legitimate management convention in the 1990s, and back to a defensive response in the 2000s. Short-run market outcomes mirror these shifting rationales, with more negative reactions to defensive downsizing. Across a diverse range of lead/lag times and moderators, we find many negative and heterogeneous performance outcomes. Most importantly, little long-term gain is found.DiscussionOur MLLMA helps to address prior criticisms on the lack of temporality in extant downsizing research, while many equivocal relationships, despite almost 40 years of downsizing research, illustrate that considerable avenues for future research remain.

Pandemic Layoffs and the Role of Stay-At-Home Orders

We compile a novel high-frequency, detailed geographic dataset on mass layoffs from U.S. state labor departments. Using recent advances in difference-in-difference estimation with staggered treatment, we find that locally-mandated stay-at-home orders issued March 16–22, 2020 triggered mass layoffs equal to half a percent of the population in just one week. Our findings contribute to explanations for why job loss in 2020 was synchronous and catastrophic, yet temporary.

Implementing patience in islam for young entrepreneurship

Self-employment is the new activity for young people. The existence of covid-19 and massive layoffs is a boon for young people who work. With these problems, young people are motivated to carry out young entrepreneurial activities. However, beginners still experience various kinds of new problems in developing it. The concept of patience is one of the supports in dealing with these problems. Where young people are directed to focus on self-organisation so that their positive energy can provide solutions that can handle these problems. This research aims to find out the entrepreneurial motivation and the problems faced and their handling. The research method involved field studies and interviews with entrepreneurs and data was collected through participatory observation, field notes, and evaluation of concept understanding. The results showed that the implementation of patience for young entrepreneurs is very effective and able to provide solutions to any problems that occur.

DO CFOs HAVE HEARTS? A REVEALING PHENOMENOLOGICAL INTERVIEW

This article sought to understand how Chief Financial Officers (CFOs) deal with feelings and emotions. Criticized for their strictly positivist view while reconciling scarce resources and diverse needs, financial directors are recognized for their coldness in dealing with sensitive issues such as massive layoffs, benefits, and investments cuts, referring to the numbers through a results-oriented perspective. Through an interview with a financial director using the phenomenological approach, it was possible to reveal little-known aspects of these professionals, related to the management of their feelings and emotions. The answers, based on her real experience, confirm the perceptions of the author, also a financial manager, that statements of positive emotions are better accepted than negative ones, not only in the finance area, but in the corporate environment in general. The importance of a supportive net and gender issues also appeared, such as the connection between feelings and weakness, attributed to women. Finally, the ability to deal with complex situations and external factors through emotional intelligence and a calm and balanced approach constitutes valuable quality to be achieved, inspiring respect and credibility.

Cognitive load, social values and financial distress: drivers of restructuring decisions

PurposeThis study aims to analyze the effect of cognitive load and social value orientation on managers’ preferences when they face with two types of restructuring choices in financially distressed firms: the first belonging to the family of organizational restructuring (massive layoffs) and the second to the family of financial restructuring (debt increases).Design/methodology/approachThe authors investigate experimentally the impact of managers’ cognitive load and social value orientation on the decision to restructure leveraged buyout (LBO) firms in financial distress by using either massive layoffs or debt increases.FindingsBy investigating the impact of managers’ cognitive load and social value orientation on the restructuring decision of an LBO firm in financial distress, the research reveals that, on average, cognitively loaded managers prefer massive layoffs over increased debt levels. The massive layoffs seemingly provide a relatively easier way to avoid conflict with influential, residual claimants. In contrast, social value–oriented managers actively avoid massive layoffs and prefer to increase debt.Research limitations/implicationsThese results imply that the performance mechanisms emphasized to improve agency relations, for example, in LBOs, have their own limitations during periods of financial distress. This study shows that one of these limits is related to cognitive distortions and personality traits.Originality/valueIn this research, the originality lies in understanding how managers’ internal factors affect their restructuring decision-making, in the case of LBO firms in financial distress.

Lost mind, lost job? Unequal effects of corporate downsizings on employees

We investigate whether employees with mental health disorders are likelier to be laid off during corporate downsizings. Our study uses nationwide administrative data from all private sector firms and their employees in Finland from 2001 to 2017 and focuses on firms with at least 20 employees that reduced their workforce by at least 20% over two consecutive years. We analyse whether the employees who were laid off had more diagnosed mental health disorders prior to downsizing compared than those who were not laid off. Controlling for employee characteristics, our baseline results show that a mental health disorder diagnosis in the 3 years before downsizing increases the likelihood of being laid off by about 6 percentage points. This highlights the increased vulnerability of employees with mental health disorders in mass layoff situations.

Analysis of The External Environment in The Face of TikTok Shop Closure

Electronic Commerce or e-commerce is all buying and selling activities or transactions carried out using electronic media (the internet). Even though telephones and television are included as electronic means, e-commerce now refers more to digital technology or the internet. The purpose of researchers in conducting this analysis is to determine the threats and opportunities that will be faced by online shop MSMEs in Gegesik village, Cirebon Regency. This research uses a descriptive qualitative approach with a case study method. The research results from the closure of the TikTok Shop have an impact on the welfare of the people of Gegesik village who previously depended on the TikTok Shop and are now very confused. There are two camps of opinion, namely the first, there are those who agree that the TikTok Shop is closed. It is a threat to MSMEs in Indonesia because some think that the goods sold at the TikTok Shop are imported goods from China, Hong Kong, and Thailand, which will close down small companies. and medium and accompanied by a storm of mass layoffs and fear of user data being intercepted by other countries. The group that does not agree with TikTok Shop being closed believes that with social media like TikTok Shop, someone can once again struggle to earn a living to meet their family's needs, whereas those who were previously laid off (layoffs) can survive day after day because they rely on their hopes from TikTok Shop.

The Game Industry’s Cataclysmic Layoffs: Where Do We Go from Here?

The games industry has been seeing unparalleled mass layoffs since 2022. Cheap debt, the COVID-19 bubble, investor imprudence, and executive extravagance have produced an unsustainable boom and investment spree that has flowed into today’s disastrous bust. For workers in the games industry, collective organization is a difficult but necessary response to ensure a healthier and more resilient future for all.

The Gender Gap in Earnings Losses After Job Displacement

Abstract We compare men and women who are displaced from similar jobs by applying an event study design combined with propensity score matching and reweighting to administrative data from Germany. After a mass layoff, women’s earnings losses are about 35% higher than men’s, with the gap persisting 5 years after displacement. This is partly explained by women taking up more part-time employment, but even women’s full-time wage losses are almost 50% higher than men’s. Parenthood magnifies the gender gap sharply. Finally, displaced women spend less time on job search and apply for lower-paid jobs, highlighting the importance of labor supply decisions.