How Big Company Layoffs Can Affect Small Communities

There are countless American communities that rely heavily on a major employer for the majority of the area’s jobs. While this can be a great asset to the local economy, it can also be a big risk to put many of the town’s eggs in just one basket, so to speak. What happens when this company experiences hardship? What if it ends up laying off some (or all) of its workforce? How does something like this affect the community as a whole?

No industry is immune to financial downturns. Whether it is manufacturing, retail or corporate positions on the line, it can be nerve-racking when employees get wind of possible downsizing. Even worse is how this last-ditch effort to save a business can kill a community. Let’s look at three possible side effects that come from large company layoffs and things businesses can do to alleviate or diminish repercussions.

Financial

The first and most logical outcome when someone is laid off is financial stress. Job loss means income comes to a screeching halt, and when the lay off is unexpected, this can be extremely detrimental. This problem only magnifies when multiple people in a community are let go. When numerous families in a community are struggling to maintain a quality of life, they will naturally decrease spending. On a large scale in a small community, this can take a serious toll. People stop shopping and stores and restaurants feel the pinch. Before you know it, the snowball has begun to roll and the community is going to take a financial hit by seeing lower spending, lower tax revenues and lower growth.

Emotional

When mass layoffs hit a community hard there is a natural emotional reaction that is felt throughout the area. Laid-off workers are left feeling confused, angry, fearful and helpless. They can feel resentment toward their superiors and co-workers who dodged the bullet and these people are likely their neighbors. Tensions can rise and emotions can be raw. This can send an emotionally charged undercurrent throughout the community. Tension can be felt in neighborhoods, schools, churches and any other place where the community gathers. Prolonged periods of joblessness can turn into depression and other mental health crises. This leads us to our next side effect.

Physical

There are physical consequences when people lose their job. Hand in hand with the emotional stress mentioned above, physical ailments can come as a direct result of job loss. When a family’s breadwinner finds him or herself without a way to provide, it can result in extreme stress and anxiety. This often results in weight loss (or gain), sleep loss, headaches and more. When a body experiences long bouts of sleep deprivation coupled with increased stress the immune system is compromised and it is difficult to stay healthy. Additionally, most laid-off employees will be without the health benefits they once had which makes getting adequate health care a real challenge. When a community has a large population of people suffering from job loss it can turn into a real health issue.

What Companies Can Do To Help

When issues arise (because they always do) one of the biggest things a business can do is to tell locals what your business is doing. Communication is key to any kind of conflict management and when a company speaks up and shares the truth, a great deal of good can come from that. Not only do employees and community members feel valued, but the company also gains respect for being forthcoming. The Wall Street Journal lists some potential alternatives to layoffs that include things like a shorter workweek, unpaid leave or offering contract positions or part-time opportunities. A business should explore all its options before it chooses layoffs. Layoffs can have drastic, negative effects on the community as well as the organization.

January 2, 2021 Update: We have just announced our BEST STOCK NEWSLETTER of 2020 AWARD!

CLICK HERE to find out which stock newsletter was up 78% in 2020 (and whose 2019 picks are now up 113%).

*** Our Award for BEST STOCK NEWSLETTER of 2020 ALERT ***

Updated January 2, 2021

At WallStreetSurvivor, we subscribe to dozens stock recommendation and advisory newsletters. There is ONE newsletter that is constantly outperforming all of the others--The Motley Fool Stock Advisor.

Five of their 2020 stock picks have doubled and the average return of all 24 of their stock picks for 2020 is up 78%!

We have been tracking ALL of the Motley Fool stock picks since January 2016. That's 5 years and 120 stock picks. As of Friday, January 1, 2021 the Motley Fool's January stock pick (TSLA) is up 720%, their March pick (ZM) is up 172%, their April pick of SHOP is up 226% and their June pick CRWD is up 120%; and another two have more than doubled. In addition, 10 of their 2019, 12 of their 2018, 11 of their 2017, 15 of their 2016. Most impressively, over the last 5 years that we have been tracking every recommendation, their average stock pick is up 209%--tht means over the last 5 years their stock picks, on average, have TRIPLED!

Now no one can guarantee that their next picks will be as strong, but our 5 years of experience has been super-profitable. The important thing about the Fool stock picks is you have to buy them the day they are recommended because they usually pop 5-10% in the first 72 hours after the release their recommendation. You sure don’t want to risk missing out on their next pick.

Normally the Fool service is priced at $199 per year but they are currently offering a NEW SUBSCRIBER DISCOUNT that allows you to get theiir next 24 stock picks for just $99/year. HERE is the LINK to visit their New Subscriber Discount page.

CLICK HERE to get access to all The Motley Fool’s Stock Picks and their next 12 months of picks for just $99 per Year! 



GET UP TO $1,000 IN FREE STOCK

WHEN YOU OPEN A ROBINHOOD BROKERAGE ACCOUNT

Robinhood was the first brokerage site to NOT charge commissions when they opened in 2013. They just past 10,000,000 accounts and to celebrate they are offering up to $1,000 in free stock when you open a new account.

Here’s the details: You must click on a special promo link to open your new Robinhood account. Then when you fund your account with at least $10, you will receive one stock valued between $5 and $500. Then, you will get a link to share with your friends. Every time one of your friends opens an account, you will receive another free stock valued between $5 and $500. Click here to learn more about this Special Robinhood offer.

Claim your free stock NOW (before it’s too late)



Comments are closed.