What are the reasons for the company's layoffs?

The reasons for the company's layoffs are as follows:

1, the company's operating conditions are not good. If a company is in poor management and poor financial condition, it is possible to cut costs by layoffs in order to maintain the company's survival and development. In this case, layoffs are not the original intention of the company, but out of helplessness.

2. Changes in the market environment. Changes in the market environment are also one of the reasons for the company's layoffs. For example, the decline in market demand in an industry or the increase in the strength of competitors in an industry may lead to a decline in the company's performance. In order to cope with the changes in the external environment, the company may take the means of layoffs to reduce costs and maintain its competitiveness in the market.

3. Technological progress. With the continuous progress of science and technology, many traditional industries have been impacted by the Internet, thus facing the risk of being eliminated. For example, the traditional retail industry has been impacted by e-commerce, and the traditional media has been impacted by new media. In order to remain invincible in the competition, companies in these industries may take layoffs to adapt to the new market environment.

4. Strategic adjustment of the company. The company's strategic adjustment is also one of the reasons for layoffs. For example, a company's decision to withdraw from a certain business field or transform into a new business field may lead to layoffs. Because the company needs to reconfigure human resources to adapt to the new strategic direction.

5. The labor cost is too high. Some companies may overhire employees in order to grow and develop in the initial stage, resulting in high labor costs. When the company's financial situation is not good, or the market environment changes, it is necessary to take measures to reduce labor costs, so as to reduce the company's operating costs and ensure the company's survival and development.

Layoff is the abbreviation of economic layoff, and it is the situation that the labor contract is terminated because of the employer. This word refers to the employer's centralized dismissal of employees according to law within a specific legal period. For enterprises with large demand for phased employment and enterprises with unsaturated production and more redundant personnel, we will carry out * * * enjoyment work.

To sum up, there are many reasons for layoffs, and different companies may take different measures under different circumstances.

Legal basis:

People's Republic of China (PRC) labor contract law

Article 41

Under any of the following circumstances, it is necessary to reduce more than 20 employees or less than 20 employees, but it accounts for more than 10% of the total number of employees in the enterprise. The employing unit shall explain the situation to the trade union or all employees 30 days in advance, and after listening to the opinions of the trade union or employees and reporting to the labor administrative department, it may reduce employees:

(1) Conforming to the provisions of the Enterprise Bankruptcy Law;

(two) serious difficulties in production and operation;

(three) the enterprise has changed production, major technological innovation or adjustment of business mode, and it still needs to reduce staff after changing the labor contract;

(4) Other major changes have taken place in the objective economic situation on which the labor contract was concluded, which makes it impossible to perform the labor contract.