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.
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.