
The Coronavirus Crisis Doesn’t Have to Lead to Layoffs - r_singh
https://hbr.org/2020/03/the-coronavirus-crisis-doesnt-have-to-lead-to-layoffs
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acrooks
As far as I can understand, the point of layoffs vs. reducing hours/etc. is so
that the person losing their job can apply for unemployment benefits. In
Vancouver, for example, I have a number of friends who work as fitness
instructors and have been impacted by layoffs.

For these people, however, they will be hired back by these studios
immediately once the studios reopen. In the meantime, they are able to get EI
benefits from the government.

It is great to see businesses like Starbucks commit to paying their staff
without revenue during these times but this is untenable for some of the most
impacted industries. Most restaurants, fitness studios, etc. that I come
across locally operate on very precarious balance sheets where a single crisis
will make the wheels fall off. Though fortunately, the government is also
working on programs to help these businesses weather the storm.

As it relates directly to the article for those businesses that continue to
operate during COVID-19 and struggle to decide whether to trim the fat. I
worked at a company during my career that was working on a Series A raise
which took about 2x longer than expect (as they do). The end of the runway was
looming and the executive team made an offer to the entire team: anybody who
is willing to forego a paycheque right now will get a xx% bonus once the raise
completes. Many team members took this option (surprisingly based on the
statistics of how many people live paycheque-to-paycheque) and it allowed the
business to continue at full headcount until we finally closed the round.

