With uncertainty in the business world due to the pandemic of 2020, more and more companies are assessing their staffing levels and making cuts. A mass layoff is a situation in which an employer reduces its total workforce, usually in response to poor sales, reorganization, or other market factors.
The Classic Definition
According to the U.S. Department of Labor, a mass layoff is defined as a reduction in force that results in employment loss at a single site of employment involving at least 33% of the total workforce in that workplace, or at least 50 workers, in a single month.
The Realities of Mass Layoff
Mass layoffs are unfortunately becoming a more common means of making cuts in businesses. In March 2020, the retail sector suffered one of the most significant waves of mass layoffs, with thousands of workers being released at popular stores like Walmart, Macy’s, and Gap.
How to Prepare
To protect your personal interests, it is important to make sure your employment and financial records are up to date, such as your resume and tax information. Additionally, make sure to review your employee handbook and talk to a legal professional to ensure you are fully protected against any unjust or illegal layoffs.
Conclusion
Although mass layoffs can be heartbreaking, it is important to be aware of the realities of the situation and to learn how to protect yourself should you find yourself facing the prospect of a mass layoff.