The Layoff

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Case Study
The Layoff

Robin Astrigo, CEO of Astrigo Holdings, has recently discovered that his business is beginning to suffer financially. Profits are significantly decreasing despite company promotions, inventory cuts, and expense adjustments. In addition, Astrigo Holdings is losing sales to other competitive retailers with more reasonably priced products. The business needs to make a change in order to pick itself up from this recession. Mr. Astrigo has come to the conclusion that multiple layoffs must take place within the company in order to compensate for financial losses. By presenting company layoffs, Astrigo Holdings will be able to compete with other retailers and focus on other areas such as customer service. Layoffs are not necessarily what Mr. Astrigo wants to do, but rather something he must do to prevent further financial loss. Some difficulties are associated with ridding the company of present employees. Company layoffs result in a low morale for existing employees, customers, and investors. This could mean terrible things for the business. If customers see that Astrigo Holdings is suffering, customers may take their business elsewhere. Moreover, layoffs put a great strain on those families affected while costing the company money in severance pay. After weighing his options, Mr. Astrigo must prepare a strategy to improve company finances by way of company layoffs or he must take an alternative route to cut company costs.

Mr. Astrigo has two courses of action he can follow in order to improve the financial stability of Astrigo Holdings. The first plan involves a ten percent company layoff based on the lowest percent of performance appraisals. Lisa Warren, a top employee at the company, proposed this plan to another employee at Astrigo Holdings, Morris Meyers. Performance appraisals are a great source to use when deciding who should stay and who should go in a business setting. If these evaluations were given correctly...
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