Why do companies like to lay off employees at the end of the year?

Mondo Social Updated on 2024-02-01

A friend received a notice from HR yesterday that it was "optimized" on the penultimate day before the Spring Festival holiday, and then because of the issue of layoff compensation, he has not been talked about for two days, and he is ready to work overtime on the weekend.

Why do many companies choose this time to lay off employees? It feels as if the employees are deliberately not allowed to have a good year. I also asked the personnel of the unit on this issue, and when the personnel director heard it, he immediately felt alert and asked me: Have you heard something?

I hurriedly said, don't get me wrong, I'm just curious, I just want to hear the answers of professionals, and see if it corroborates my own ideas. She hesitated for a moment, convinced that I wasn't trying to hear anything or to trick her, so she reluctantly answered my question.

In fact, there is no agreed time for layoffs, but the end of the year is indeed a time point that many companies like in recent years, and the reasons are nothing more than the following:

1. The company does not want to pay another month of holiday salary, so it is better to cut it horizontally and vertically, so it is better to cut it early and save a month's wages;

2. Avoid settling the year-end bonus, regardless of whether it is issued before or after the year, as long as the person leaves, the tea will be cool, and the settlement will not be automatically made, which saves a lot of expenses;

3. Lay off people in advance to vacate positions, and recruit new people in the coming year (if there is a recruitment plan);

4. The report data at the end of the year are better, and they are included in the statistics at the end of this year, and the good or bad will not be included in the budget of the next year.

5. It is purely the bad taste of some bosses, who can't make money without running a company, and they are not happy, so they don't plan to let employees have a good year.

It sounds like what I thought, except that the last one may be related to the boss's character.

I don't know how many people will go back to their hometown and never return to Shenzhen during the Chinese New Year this year.

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