Recently, there has been a spree of layoffs happening in different organizations, spanning from startups to large corporations. These actions reflect a significant trend reshaping the employment landscape and affected individuals are caught in the web of finding new jobs. In 2 weeks, Amazon, Paystack, Alerzo, and many other startups have dismissed some of their workers due to reasons peculiar to each of the organizations.
The event of mass layoffs and dismissals may not be clear to several outsiders due to limited transparency in corporate communications, confidentiality agreements, or a lack of comprehensive reporting by companies.
While some companies may choose to disclose the “why”, others may not. Often, organizations prioritize safeguarding sensitive information or maintaining a positive public image, leading to a gap in public understanding regarding the true extent, reasons, or impact of these workforce changes.
But majorly, the possible reasons for most layoffs include the following;
A shift in the organization’s operational structure
Most times, organizations want to change the pattern of their operations mainly because they want to focus on optimizing costs, enhancing customer proximity, and aligning resources geographically which is what the management Paystack did with their recent dismissal. Most times, it is not about financial constraints or performance issues.
Technological advancements
Technological optimizations can lead to job redundancies. The need for certain roles within the company may diminish, prompting the company to streamline and consolidate these positions, resulting in layoffs. The truth is technology keeps evolving and when companies experience any form of efficiency gains via technology, they might find it necessary to restructure staff.
Employees may lack soft skills
In many professional settings, soft skills are highly valued as they facilitate collaboration, understanding, and conveyance of ideas. While technical expertise and contributions to projects are vital, an individual’s ability to communicate ideas, concepts, and project progress is often considered equally important. Organizations value a whole of these soft skills. So, if an employee is lacking or below par with the company’s requirements, it can sometimes lead to their departure, even if they possess valuable technical expertise.
New and Strategic Initiatives
An organization’s strategic initiative may be to enhance the quality of talent within the organization. It could be a performance review process causing a commitment to upholding a high standard of talent within the company.
In instances where individuals might not meet these elevated standards, the company might decide to let them go, intending to replace them with new hires possessing the desired skill set or performance caliber.
Financial Constraints
This is the most common reason for some of the layoffs happening. The present economy of the country is close to collapse which is affecting business for most people. For some companies, there has been a lot of reduced consumer spending, decreased demand for goods or services, and overall financial instability. As a result, companies may face revenue declines, increased operating costs, or difficulties in securing investments or funding. When times are hard like this, businesses may need to make tough decisions to cut costs, which can include reducing their workforce.
The layoffs are still ongoing and no one knows if they will stop anytime soon. Most of the organizations believe that it is for the best.