Citigroup, Amazon and Google are among the many healthy companies that are in the midst of corporate layoffs currently. There was a time when layoffs were associated with struggling companies that were losing money, and news of layoffs used to cause shockwaves. Now a 6% reduction in corporate staff at a Fortune 500 company barely makes headlines. It’s simply a widely accepted business practice. Indeed, layoffs are considered an efficiency “best practice” for adjusting staff in light of current business needs and technology advances. It is a boost to the bottom-line, which is why a company’s stock commonly rises when it announces a layoff.
Thankfully, law departments rarely experience game changing layoffs. But the General Counsel of a large legal department might have to find a sacrificial lamb or two to align with a broad RIF mandate. So don’t get too comfortable.