Redundancy pinyin

It is the abbreviation of economic layoffs, and it is the situation that the labor contract is terminated due to the employer's reasons. This word refers to the employer's centralized dismissal of employees according to law within a specific legal period. Enterprises that implement economic downsizing can reduce surplus staff due to changes in production and operation conditions.

There are two situations in which enterprises reduce their staff: one is that they are on the verge of bankruptcy and are declared by the people's court to enter the legal rectification period; In another case, serious difficulties occur in production and operation, reaching the standards of enterprises with serious difficulties stipulated by the local government.

In addition, the reduction of employees in enterprises should also be carried out in strict accordance with the procedures stipulated by laws and relevant rules. Only when the enterprise meets the statutory conditions and strictly follows the statutory procedures can layoffs be legal, and it is effective to terminate the labor contract with employees through layoffs.

Positive effects of layoffs:

The advantage of layoffs is that everyone cares about feedback such as complaints, and the cohesion of the team is stronger and the execution is improved. Layoff is the profit requirement and cultural requirement of the company. Behind the company's losses is the team, and behind the team is the culture and mentality, and the best way to change the culture and mentality is to change coaches and lay off employees.

Layoffs are ostensibly to reduce costs, but behind them is the tough logic of performance culture.

The reflection of the capital market also proves this point. If large-scale layoffs are taken as one of the measures of the extensive restructuring plan and a sound strategic plan is formulated, the company's share price will rise by about 4% on average within a few days after the news is announced. Layoffs send an important signal to customers, competitors, suppliers and Wall Street.