South Florida Hospital News
Saturday October 31, 2020
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June 2020 - Volume 16 - Issue 12
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Is COVID-19 a Ready Excuse for Layoffs?

People and businesses do not like to admit defeat and we certainly don’t like to take the blame. For those businesses who were already beaten, COVID-19 provides a ready excuse for cutbacks and layoffs, and shedding of all things redundant. Even as the Federal government opened its coffers and made available over $2 trillion worth of aid to help bridge the COVID-19 period; some businesses have still elected to proceed with layoffs. Covid-19 is a great “out” for certain businesses that were heading down a bad path to begin with.

Redundancy comes in several possible forms, and COVID-19 should not be used a default reason:
- One is companies with bad business models – meaning the business models that were no longer viable or less viable than before like certain retailers, transportation providers, and even manufacturers.
- Second is outsourcing - businesses that had already decided to shift their operations to outsourcing or overseas, now have the opportunity to blame their move on COVID-19.
- Third is redundant locations - companies where multiple locations are no longer as necessary as they were 5 years ago, like certain retailers, banks and financial institutions.
- Fourth is a superior competitor - companies that were challenged by a competitor who had a more marketable product.
- Fifth possibility is dried up funding - where certain companies survived on borrowed or investor funding, as those funds dried up and so did the ongoing operations of the business.
 
Regardless of the real reason, COVID-19 provided a great “out” and an opportunity to save face for certain companies.
 
As the world plows forward toward a post-COVID-19 era, it is becoming glaringly clearer that business scalability and ability to employ labor are less of a concern due to technology. With technology scalability is much easier. For those who persevere, understanding technology and how to utilize it will be more essential than ever. In healthcare chief strategy officers and technology officers will be the key to forging a path to the future.

Ben Assad Mirza, Healthcare Law Partners, LLC, can be reached at (954) 445-5503 or Ben@HealthcareAttorney.net.

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