Tu recently completed an aggressive hiring drive at major universities, hiring several new engineers and CAD specialists. These new hires barely squeaked in before the hiring freeze, but with the downturn in sales, the atmosphere has changed dramatically. The staffing department has known only hiring; they never had to plan for a layoff. Tu worries that a layoff of newly hired employees will seriously harm the company’s reputation in the community and make recruiting difficult when the economy gets better.
Tu received a confidential memo from Smith and Grant requiring a 10 percent reduction in labor costs by the end of the fiscal year. He wonders if there is some way to cut labor expenses while saving as many jobs as possible. He also worries about the loss of talent and retaining the knowledge of long-time employees. He’s got some cost-saving ideas, but it certainly won’t add up to 10 percent. Tu feels certain there will be a reduction in force. A few managers will be delighted; they all have some bad apples they want to get rid of. Tu wonders how he is going to ensure that the layoffs are equitable and nondiscriminatory. This is not going to be good for morale, and he dreads the backlash when word gets out.
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StaffingatTheKingCompany.docx
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