Today layoffs refer to the natural situation in business. It became common due to several reasons. Firstly, economic crises in the definite country and the whole world caused a lot of companies to stop their performance and close their business departments. These processes naturally lead to reductions in the personnel. Another reason can be seen in the continuous development and improvement of technologies from day to day. It means that with every new technology, equipment, or facilities companies need less personnel for dealing with the work. Therefore, continuous technology improvement is the reason why some people lose their jobs. The third reason is connected to the new tendency that is called outsourcing. Outsourcing is the term that refers to the situation when company closes its production and offices in the native (developed) countries and transmits them into the poor countries, where the labour work is cheap. These are the main reasons why the company faces layoffs.
Telling person that he/she is fired is rather difficult. People who are firing workers always feel pressure and strong responsibility for what they are doing. They feel bad about informing people that they are unemployed and have to search for another job. It is especially hard to say this to the person who is working rather well, meets all deadlines and objectives, and completes the tasks perfectly. All employees ask about the reason of the dismissal, and the person responsible for personnel reduction has to make the truth as gentle as possible (Read, 2004). It is hard to explain the person that he/she has to go because company, for example, moves its business in another country, where the labour is cheaper. Therefore, CEO, who tells people bad news, has to be paid additional bonuses in order to motivate him/her to work and compensate the bad feelings. If I were HR manager, I would try to pass people this bad massage as soft as I could. I would give them more time to find a new job. The feeling of being unemployed can rather demotivate the person and cause the depression. Therefore, layoff is very hard work that brings only negative feelings which should be compensated.