Businesses Facing Emergency Downsizing Have No Room for Error

From household names like Macy’s and Neiman Marcus to your favorite neighborhood restaurant, grueling choices await business leaders forced to quickly cut costs. The COVID-19 economic shutdown has created an unprecedented leadership challenge for those who have enjoyed a historic decade-spanning bull market and record low unemployment rates.

The learning curve here is steep, with many business leaders struggling to appreciate the difference between furloughs and layoffs and scouring the fine print of insurance policies to determine the benefits they can offer. An improperly executed workforce reduction or furlough can lead to litigation costs that could easily wipe away any cost-savings a business is trying to achieve.