Sometimes used as a verb, as in "the employees were pretty heavily riffed". Often pronounced like the word riff rather than spelled out. RIF – A generic reduction in force, of undetermined method. Common abbreviations for reduction in force Firings imply misconduct or failure while layoffs imply economic forces beyond the employer's and employees' control, especially in the face of a recession. When an employer is faced with work of a particular type ceasing or diminishing at a particular location, it may be perceived as obfuscation. "Redundancy" is a specific legal term in UK labour law with a definition in section 139 of the Employment Rights Act 1996: see Redundancy in United Kingdom law. "Early retirement" means workers may quit now yet still remain eligible for their retirement benefits later. "Attrition" implies that positions will be eliminated as workers quit or retire. "Mass layoff" is defined by the United States Department of Labor as 50 or more workers laid off from the same company around the same time. Many other euphemisms have been coined for "(permanent) layoff", including "downsizing", "excess reduction", "rightsizing", "leveraging synergies", " delayering", "smartsizing", "redeployment", "workforce reduction", "workforce optimization", "simplification", "force shaping", "recussion", "manage out people", "resource action", and "reduction in force" (also called "RIF", especially in the government employment sector). The term became a euphemism for permanent termination of employment and now usually means that, requiring the addition of "temporary" to refer to the original meaning. The term "layoff" originally meant a temporary interruption in work (and usually pay). Terminology Įuphemisms are often used to "soften the blow" in the process of firing and being fired. The authors suggested, that the stock price manipulation alone creates a sufficient motivation for publicly-traded corporations to adopt the practice of regular layoffs. A study of 391 downsizing announcements of the S&P 100 firms for the period 1990-2006 found, that layoff announcements resulted in substantial increase in the companies’ stock prices, and that the gain was larger, when the company had prior layoffs. Usually a layoff occurs as a cost-cutting measure. Research on downsizing in the US, UK, and Japan suggests that downsizing is being regarded by management as one of the preferred routes to help declining organizations, cutting unnecessary costs, and improve organizational performance. Downsizing in companies became a popular practice in the 1980s and early 1990s as it was seen as a way to deliver better shareholder value as it helps to reduce the costs of employers (downsizing, 2015). Downsizing in a company is defined to involve the reduction of employees in a workforce. Laid off workers or displaced workers are workers who have lost or left their jobs because their employer has closed or moved, there was insufficient work for them to do, or their position or shift was abolished (Borbely, 2011). A layoff is not to be confused with wrongful termination. Originally, layoff referred exclusively to a temporary interruption in work, or employment but this has evolved to a permanent elimination of a position in both British and US English, requiring the addition of "temporary" to specify the original meaning of the word. ( February 2020) ( Learn how and when to remove this template message)Ī layoff or downsizing is the temporary suspension or permanent termination of employment of an employee or, more commonly, a group of employees (collective layoff) for business reasons, such as personnel management or downsizing (reducing the size of) an organization. You may improve this article, discuss the issue on the talk page, or create a new article, as appropriate. The examples and perspective in this article may not represent a worldwide view of the subject.
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