When doing layoffs, there's nothing nefarious about a company keeping the employees it needs most. It's much better, he says, if managers keep poor performance from occurring in the first place. Fortunately, he adds, poor performance is the least common reason people lose their jobs. More often, employees will be asked to move on because their position is being eliminated or the company is under stress. When that's the case, staffers get a smidgen of protection from laws that govern downsizings.
Loopholes allow companies to skirt around notification in some cases.
Nevertheless, companies can't expect to dismiss disproportionate numbers of women, minorities, or older workers without getting sued for discrimination. The primary reason the company gave on Mar. 20 for offering buyouts to employees over age 50 with at least 10 years' experience was to save money. A company spokeswoman described the early-retirement program as a way to support Kmart's overall business objectives. Conway's pursuit of this goal explains why company watchers don't totally buy the economy as the reason for Kmart's cuts. He also wants a new culture at the company.