Sudden mass layoffs by MNCs and its psychological consequences on employees.
It is important to underline the harm sudden layoffs are causing employees of multinational companies. Over the past few months, we have seen many multinational companies go on a spree of mass layoffs. These are sure to make a negative impact on India’s exports, especially in sectors such as Information Technology.
A question that comes to mind is why? When asked to Alphabet CEO Sundar Pichai, he was quoted as saying, “We don’t get to choose the macroeconomic conditions always.” There were many forecasts that were made in the beginning of the year including made by International Monetary Fund that global GDP would dip, first as a repercussion to pandemic and then due to Russia-Ukraine war.
Mass layoffs causes huge unemployment problem for any country. It causes major lows for a country’s economy and its GDP. Many families lost their loved ones during pandemic and as we come out of pandemic and the grief of lost souls, the fear of being served a “pink slip” is what many are facing.
Layoffs not just put a burden on the society but also on the employees and their families. The employees’ regular income is affected, which causes extreme psychological setback and on those dependent on them. Getting a new employment may become tougher, as the demand lessens and unemployment burden increases. An individual’s anxiety levels and stress levels increase, which will create low esteem. There are even instances of suicides that have come to light.
It is exceedingly important that companies have proper rules in place and act sensibly and take conscious decisions. It is important that governments also come forward to take responsibility and make sure employees’ rights are secured.