Why employees are get terminated at the time of recession?

I am Ritu now working in Emphasis BPO, Bangalore from past 3 years. I was working in First Indian Corporation before three years. It was my first job and I worked there for 8 months. During that time big recession had come whole over world, impact of which I was terminated from the job. Why employees are get terminated at the time of recession? Is there any other way other than withdrawing the employees from the company at the time of terminations? Why do they do that?

Related Questions:

• Can a terminated employee get a resignation letter from the company?
• Company terminated entire team without prior intimation
• Is it desirable to sustain recession thinking the interest of the employees?
• Lot of employees being made redundant in our company
• Are companies providing with experience letter when employee gets terminated by the employer?
• Do I have to pay something if I get terminated from my job?
• What is the HR role in handling recession impact?
• How can i retain my post under this prevailing IT recession period?
• Is that right to appoint a terminated employee on rolls if his prior experiences are excellent?
• Is there any fix period for employer when he canÂ’t terminate an employee as per his/her wish?

Ritu,
Most of the companies running their by getting projects from clients. During recession what happened is companies won't get projects from clients or very few projects they may get.
So in that period to their income also cut down which makes them no money to pay for their employees. In order to cut down their expenses they used to fire i.e. terminate some of the resources. That is what happened in software industries.
Once they got projects from clients they again recruit resources.If you have still any concerns post here.

All the best!!

Hi. It is but obvious that during times of recession the company terminates the services of many employees known as lay offs.This is done in accordance with the existing financial resources of the company.

As the company's financial resources are on a decline during recession they are forced to terminate the services of several employees as they cant pay their salaries.

Another option is that they can reduce the salaries of their employees and not expel them.

Best of luck. Thanks

See due to recession the profit margins of the company gets reduced very much due to decrease in the business of the company.

Many times companies are not able to even get back the investment that is made by the company.

So to reduce the expenses of the company ,A company adopts various measures.

As employee's salary is one of the biggest expenses for a company they cut down the number of employees of the company.

They can also reduce the salary of employees as an alternative measure to reduce expenses.

Hi,


Recession arises when there is a loss in share market or World economic break down

In such cases , the company will not be able to withstand the economic breakdown

So they terminate the employees who is not performing well in their work an whoever in bench without work as

The company is unable to pay them for their less quality of work

Unfortunately some employees who is in bench without work is getting affected its their bad luck

So nothing can be done for this as this is global issue

Only thing is to perform well so that we will not get affected at these times



Thanks @@@

Hi Ritu,
Private companies work and revenue is based upon projects. During recession as there will be less projects to show revenue company has to downsize the resource.
During that point in time they will try to terminate contractors and freshers. As there will be less projects there they will keep their experienced skilled resources whom they would like to retain. As you were fresher that time so they terminated you during downsizing. There are other way during recession company can cut travel cost, salary hikes etc, but downsizing works well as you can not keep redundant resources while you do not have projects.

During the time of recession most of the companies suffer from bad conditions and do not earn much profit. They do not have the amount to pay to their employees as the market goes down and they only option, they left with it to terminate the employee. This recession arises due to short profit and poor condition of products in the market, If the company do not earn profit, ten from where they will pay to their employees, so mot of the employees are terminated during recession period.

Hello,

When recession stuck , the statistic in the market drops down. This also reduces the investors and clients refuses to give projects and works to the companies.
Because of this the organisations and company runs out of resources.
This leads to crisis in the companies
so this becomes difficult for them to pay the salary to their employees .
so this leaves no choice but to cut down their employees.
and many corporate employees are rendered jobless during the recession time.

but you have to be strong and keep a 'never give up attitude' and try for another job.

Thank you

There are various reasons due to which employees are termination during recession which are stated below-

1. Due to non-availability of the new projects.
2. Due to stoppage of the present project.
3. In order to lessen the burden of expenses on the company.
4. In order to maintain profit rate as decided by the company.
5. Some times it comes upto the survival of the company, so termination becomes necessary.
6. To stable the share price of the company.

Regarding other way- YES, There is an alternative way which has been followed by many companies. Many companies asked their employees that in order to lessen the cost burden, the salary and the other benefits will not be provided for two-three months, when the recession period completes, salary will be provided.

Dear sir/madam-before i go to discuss about recession,first i am to learn about recession,means in economic term slump is seen everywhere as a result every corner of company/country feel the effect of recession.

It reduces the income as a whole .company suffers' from getting new,new,orders as a result their economic condition sharply come down.companies can not pay theier employees salary exactly and take decision for termination to adjust their income and expenditure position.under this situation job vacancy can not be created due to less income.

These are the reasons of termination employees' from specially soft ware company.

Thank you,

Recession can put great impact on BPO jobs. Whether you are in your own business, an entrepreneur or an employee of BPO or any other MNC the recession affects everyone. If you are working in any field specially in BPO, you should examine the impact of recession and ready with many alternatives during that time. According to the economics, recession will raise unemployment by abut 2-3 percent depending on the field.

recession.jpg

Dear Friends

Yes this is a serious problem that when recession strikes industry then there is a job cut..

As you know that most of the companies work on some project when there is a recession project client stops paying them and due less finance they have to cut the jobs of their employees..

The recession strike INDIA in 2008 but that was not so badly as compared to the other countries as there were less amount of foreign clints investing in INDIAN companies..

But it was enough to take away jobs from many aspirants..

So you should leave it in past and continue your present work with zeal and passion..

ALL THE BEST

Heyy

at the time of recession companies goes through huge losses. To cut down that loss they have to cut down in man power for which they can minimize their loss.

They cant keep giving you salary and bear the loss that they incurred during that recession.

It definitely unfair but you really cant complaint as they really cant pay you the salary even if you keep working.

Until the market condition gets better they wont be hiring anyone again.

you can see just after the europian crisis the prices of so many electronic products increased plus so many people lost their jobs.
Thank you

Employees are terminated at the recession time due to decreasing financial strength and loss in the revenue of the company. As sales revenues and profits decline, the manufacturer will cut back hiring new employees or decrease salary or fire their employees. In an effort to cut costs and improve the bottom line, the manufacturer may stop you paying incentives and bonus. They can cut your salary directly and they can ask you to work more and more. As the recession increases in severity and length, management and labor may meet and agree to mutual concession, both to save the company and to save jobs. The concession may include wage reductions and reduced benefits. If the company is a BPO, it may be forced to stop the service and foreign companies can stop their outsourcing units.

Most of the businesses running their by obtaining comes from shoppers. throughout recession what happened is corporations will not get comes from shoppers or only a few comes they will get.
therefore therein amount to their financial gain conjointly curtail that makes them no cash to obtain their staff. so as to chop down their expenses they wont to hearth i.e. terminate a number of the resources. that's what happened in software system industries.
Once they got comes from shoppers they once more recruit resources. If you have got still any considerations post here.

Private corporations work and revenue is predicated upon comes. throughout recession as there'll be less comes to indicate revenue company has got to downsize the resource.
throughout that time in time they're going to try and terminate contractors and freshers. As there'll be less comes there they're going to keep their practiced trained resources whom they might wish to retain. As you were lowerclassman that point in order that they terminated you throughout saving. There square measure different approach throughout recession company will cut travel price, remuneration hikes etc, however saving works well as you'll not keep redundant resources whereas you are doing not have comes.

Employees square measure terminated at the recession time attributable to decreasing money strength and loss within the revenue of the corporate. As sales revenues and profits decline, the manufacturer can deflate hiring new staff or decrease remuneration or hearth their staff. In a trial to chop prices and improve the lowest line, the manufacturer could stop you paying incentives and bonus. {they will|they will|they'll} cut your remuneration directly and that they can raise you to figure a lot of and a lot of. because the recession will increase in severity and length, management and labor could meet and conform to mutual concession, each to save lots of the corporate and to save lots of jobs. The concession could embrace wage reductions and reduced advantages. If the corporate may be a BPO, it should be forced to prevent the service and foreign corporations will stop their outsourcing units.

Its a very simple question. Recession is a state when a company goes through a loss phase.

And it happens in a chain where loss belongs to a lot of people across continents.

Due to unavailability of projects, the company have no choice other than firing its employees.

Because they would not be eligible to pay the employees.

During the recession, the companies face many problem like no turnover, no projects etc. So, there is no such more works for employees. Therefore, for maintain the stability of the companies; they need to terminate the employees. Because they can’t afford even the employee’s salary.

And there is one way, which may be save employees from termination. If the other employee agree or reduce their salary and other benefits. So, Company may not terminate the other employees.

ALL THE BEST

HI............

time of recession most of the companies suffer from bad conditions and do not earn much profit. They do not have the amount to pay to their employees as the market goes down and they only option, they left with it to terminate the employee. This recession arises due to short profit and poor condition of products in the market, If the company do not earn profit, ten from where they will pay to their employees..Recession can put great impact on BPO jobs. Whether you are in your own business, an entrepreneur or an employee of BPO or any other MNC the recession affects everyone. If you are working in any field specially in BPO, you should examine the impact of recession and ready with many alternatives during that time.

BEST LUCK............

Hello friend,
during recession companies dont get project and their business hampers .the revenue generated by business is very low at that time and that time work is very less.so campanies cant pay salary without work and when situation is so critical.so inorder to stay in market they take certain steps like
1-retrenchment of employees and keep the best ones
2-decrease the salary hike
3-stop hiring more people.
4-delay the joining of heired employee.
5-decrease the salary of its employees to some amount.
so these are the common steps take during recession.
Thank You.

hello sirRecession is the word like a fear of job.when a economic world goes into very less business or market goes to down all possible price become rise and demands goes down it is relationship of recession.we cannot analyze the impact of the recessionon participants who lost their jobsand left their employer's plan during the period.So an employee should do his/her best always to escape this unlike word recession.Dear how can we escape from it is very tough but I am trying to help by suggesting this pdf file

HI RITU
Ritu , I will explain the whole situation in few lines .
1. Recession leads less income or we can say less profit to company
2. As recession means less work or less order of work or slowness in industrial sector
3. Less profit means less money to spend on employes or less money to give as salary
4. Less work , so no need of extra employe for work and for paying them
5. Then in last which lead to termination of employes.
6. If company does not want to terminate the employes , company reduce the salary of employes in order to balance it financial status.
Thank You