The decision to downsize can ultimately impact:
- The workplace
- Your employee
- Your employee’s family
- The community.
The following section provides information and outplacement resources to assist you through this difficult transition.
Before you make the decision to downsize, you may want to consider the following cost-cutting strategies:
- Limit nonessential expenses (mass mailings, travel, company parties, etc.) as much as possible.
- Get aggressive with collections and collect from customers that owe you money.
- Involve employees to develop and implement cost cutting tactics in order to prevent potential layoffs.
- Consider reducing employees’ work hours and file attached temporary Unemployment Insurance claims on their behalf. This is a good faith benefit that is paid to attract workers to return to their place of employment when more work becomes available. For more information on attached claims, please visit the Employment Security Commission’s website
- Fill vacant job listings through attrition, reassign crucial job duties to other employees, or encourage employees to share job responsibilities.
- Determine job duties that can be performed at the employee’s residence rather than at the workplace or offer a flexible work schedule. Encourage employees to work four 10-hour days rather than five 8-hour days. Both strategies should result in a decrease in overhead expenses.
- Temporarily reduce employee’s pay until business improves.