Does Laying Off Redundant Personnel Hurt Employee Mood?
Thanks in Advance.
No. But beware, it’s costly.
What do you mean?
Have a look at your income statement, you’ll find something called “severance pay” on the list of expanses. It’s the sum of money you pay to your employee when you fire him.
I don’t know how AS calculates it, but I was paying around AS$5,000 per employee fired whose salaries were around AS$1,000. But it’s quite easy to find out how much you have to pay: fire just one employee and see how much your severance pay changed.
Hope it’s clear now.
Much clearer. Thanks.