NEW YORK (AP) — Persistent inflation and rising costs can force small businesses to cut staff.
According to a report by Challenger, Gray & Christmas, a global outplacement and business executive coaching firm, U.S.-based employers announced 64,789 job cuts in April, down 28% from the 90,309 cuts announced in March.
But Andrew Challenger, the company’s senior vice president, said he expects further cuts to come.
“The labor market remains tight, but we expect companies will see hiring slow and further cuts will be necessary if labor costs continue to rise,” he said. “April’s low numbers may be the calm before the storm.”
Here’s how to handle the professional situation when firing someone:
First, make sure you’re complying with layoff regulations: The federal WARN Act, or Worker Adjustment and Retraining Notification Act, requires 60 days’ notice for planned closures or mass layoffs, but it only applies to employers with 100 or more employees.
Some states have their own WARN laws with different rules. For example, New York’s WARN law applies to private businesses that employ 50 or more full-time employees in New York State.
Next, create a termination plan. Choose a termination date and notice date. Notify employees privately and avoid multiple terminations if possible.
Be clear about the reasons for the termination and update staff about severance pay, unemployment benefits, and COBRA health insurance. You can also offer to write letters of recommendation for employees.
