Published: Tuesday, May 28th 2024
NEW YORK – With rising costs and stubborn inflation, small business layoffs are sometimes necessary.
According to a Challenger, Gray & Christmas, Inc. report, employers in the U.S. announced 64,789 layoffs in April, a 28% decrease from the 90,309 announced in March.
Andrew Challenger said that he expected more cuts in the future.
Read More: Latest US inflation report may provide clues to future path of prices and interest rates
The labor market is tight. As labor costs rise, businesses will be slow to hire and we expect that further cuts will need to be made,” he said. “This low figure for April may be the calm prior to the storm.”
How to let people go professionally:
Ensure that you are following all regulations regarding layoffs. According to the federal WARN Act (Worker Adjustment and Retraining Notification Act), employers must give 60 days’ notice of a planned closure or mass layoffs. This is only applicable to employers with more than 100 employees.
Some states have a WARN act that has different rules. New York State, for example, has a WARN Act that applies to businesses in New York State with 50 or more employees.
Next, craft a layoff plan. Select a date to notify employees and for layoffs. Send an employee notification privately and try to avoid more than one round.
Be sure to explain the reasons for the layoffs. Also, inform your staff about severance pay, unemployment insurance and COBRA. You could also offer to write a recommendation letter for the employee.