This tactic is called “short fill”. You indicate that downsizing is coming, offer a generous buyout plan, some of the older(higher paid) employees take the deal. Result 10-15% overall workforce shrink, followed by replacement hiring of younger(lower paid) people to fill openings as they occur. Lower overall labor cost, increase profits, bingo.
This tactic is called “short fill”. You indicate that downsizing is coming, offer a generous buyout plan, some of the older(higher paid) employees take the deal. Result 10-15% overall workforce shrink, followed by replacement hiring of younger(lower paid) people to fill openings as they occur. Lower overall labor cost, increase profits, bingo.