Retrenchment and employee morale

Recently a town hall was conducted in our organization to brief the employees about the current economic situation and the need for effective performance in these times. The company, unlike most other organizations, cares for the welfare of its employees and avoids job cuts, so their colleagues and dear friends do not undergo extreme difficulties in this poor market. Their decision comes as a welcome move as it is not only the employee who gets sacked who faces the brunt, but also his friends and managers who cannot bear to see someone who had grown with the company, depart.
It is not an easy job for the manager too, to choose a few among the selected ones to issue the pink slip. Restructuring also leads to strange work conditions that could prove harmful to the productivity of the employees. To a large extent companies must focus on retaining their workforce, if they want to retain their ‘reputed employer’ status. It is not a sign of a good employer to lay off employees just to face worst times of their life, outside.