In order to streamline operations and improve efficiency, businesses sometimes have to make difficult decisions such as reducing their existing workforce. To make an informed decision as to what steps to take, most corporations evaluate the future needs of their company closely. Sometimes, however, the solutions and decisions that follow are tough ones.
Recently, Entergy Corporation, which is the largest corporation based in Louisiana, announced that in an effort to improve efficiency at the company, a number of layoffs will likely occur. The announcement was made shortly after they released their second-quarter earnings estimates. The company cited the merger of its electric transmission business, which manages transmission lines and is expected to likely save its customers over $1.4 billion over the next 10 years, as a reason that impacted its second quarter earnings. Also, the company noted that it is working to get regulatory approval to sell its high-voltage transmission lines to another company. Further, other factors such as higher income taxes and costs with associated the implementation of the human capital management initiative were noted as affecting their second-quarter earnings estimates.
Presently, the exact number of the anticipated layoffs is unknown. However, the company spokesperson noted that the corporation is looking at its business goals and targets to meet the challenges that the competitive market poses. In order to be more efficient, Entergy hopes to look at all sections and all parts of its business.
The future of a business depends on many factors such as present market forces, regulation and protection from legal liabilities. In general, business law is a complex area of law. Typically, all businesses have to deal with legal issues and make decisions which impact not only its future, but also its workforce.
Source: The Advocate, “Entergy expects workforce reduction,” Ted Griggs, July 23, 2013