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ARTICLE · 08 MARCH 2023

Reductions In Force: Some High-Level Issues To Consider

Foley & Lardner LLP
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As the country continues to navigate an economic downturn and employers discuss the possibility of reducing their workforce, employers should be aware that there are several layers to conducting...

United StatesEmployment and HR
Brooke C. Bahlinger
Brooke C. Bahlinger
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As the country continues to navigate an economic downturn and employers discuss the possibility of reducing their workforce, employers should be aware that there are several layers to conducting a reduction in force, including potential additional disclosures, extended consideration periods and advance notice requirements. Below is a high-level reminder of some issues companies should consider when preparing for a reduction in force.

1. Evaluate the Decisional Unit

If an employer is considering a reduction in force, the company should first evaluate the potential decisional unit. This decision is generally driven by the business needs and/or the current state of the business, which is driving the decision to conduct a reduction in force. Will the company consider all employees in the reduction in force? Or will the company only consider certain departments for example? The decisional unit is generally a business decision, but employers should be cognizant of

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