Today layoffs have become companies’ default response to the challenges created by advances in technology and global competition. Yet research shows that job cuts rarely help senior leaders achieve their goals. Too often, they’re done for short-term gain, but the cost savings are overshadowed by bad publicity, loss of knowledge, weakened engagement, higher voluntary turnover, and lower innovation, which hurt profits in the long run. This article looks at better ways to handle changing workforce needs that make sparing use of staff reductions and ensure that if they do happen, the process feels fair and the affected parties have a soft landing. Most successful approaches begin with a philosophy that spells out a firm’s commitments and priorities, establish methods for exploring layoff alternatives (such as furloughs, retraining, and reassignments), and determine options for three scenarios: a healthy present, short-term volatility, and an uncertain future. As firms like AT&T, Michelin, Honeywell, and Nokia have learned, thoughtful planning helps organizations address workforce transitions and cope with a shifting economic landscape far better than layoffs do.
What Companies Still Get Wrong About Layoffs
Research has long shown that layoffs have a detrimental effect on individuals and on corporate performance. The short-term cost savings provided by a layoff are often overshadowed by bad publicity, loss of knowledge, weakened engagement, higher voluntary turnover, and lower innovation — all of which hurt profits in the long run. To make intelligent and humane staffing decisions in the current economic turmoil, leaders must understand what’s different about today’s larger social landscape. The authors also share strategies for a smarter approach to workforce change.
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The Enshittification of Work: Platform Decay and Labour Conditions in the Gig Economy
ABSTRACT This study investigates the mechanisms by which gig platforms degrade labour conditions over time, building on the concept of platform decay, or ‘enshittification’, initially developed in the context of social media platforms. In this article, we draw on 30 interviews with long‐term gig workers in the ride‐hail and grocery delivery sectors, offering insights into how these companies shift from offering attractive working conditions to exploiting labour as these services develop market power via network effects. We identify three mechanisms through which gig companies claw back value from workers over time: burden shifting (transferring operational costs to workers), feature addition and alteration (increasing the demands on workers), and market manipulation (reducing worker bargaining power). We then explore how workers respond to platform decay, finding that workers adopt three responses: effort recalibration , multi‐homing and navigating the changing conditions through what we term toxic resilience . This study contributes to the gig work literature by developing a framework to explain how working conditions in the gig economy improve or degrade over time. In doing so, this article provides a framework for organizing the growing constellation of labour research on gig workers.
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