Downsizing is the process of reducing the size of a workforce. People are being laid off from their jobs. Effectively, this isn’t much different than being fired for any of these employees, but it often happens en masse. For example, a company will cut 10% of its workforce, which could mean laying off hundreds of workers.
When companies do this, executives are supposed to consider if there will be any disproportionate impacts on specific groups – such as female workers, workers over 40 or workers from a specific ethnic or cultural background. Ideally, the downsizing should apply equally to all groups of employees.
What if it doesn’t?
It can become very problematic if it’s clear that the downsizing isn’t equal or fair. In fact, the company may be using it just to hide discrimination.
For example, say that the CEO actually wants to fire all of the female workers. They can’t simply say that that’s their intention, as it would be a clear example of gender discrimination. But the female workers only make up about 20% of that workforce to start with. So the CEO announces that they will unfortunately have to downsize by roughly 20%. The vast majority of those who are let go are women. A year later, the company starts hiring again, citing positive growth after the downsizing, and only hires male workers.
What options do you have?
This is just one example of how downsizing could be problematic, but it helps to show employees what red flags to look for. If you find yourself in this position and you believe you have been discriminated against, then it’s time for you to start looking into all of your legal options carefully.