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Tuesday, September 22, 2026

Manufacturers' Legal Considerations for Staffing Reductions - Jackson Lewis

In these uncertain economic times, many manufacturers and other employers are deliberating over measures to shore up their financial positions and reassessing their workforce needs. Employers may be considering organizational restructuring, including voluntary attrition programs and staff reductions (e.g., layoffs), to manage costs, eliminate redundancies, and ensure operational efficiencies, all of which are critical to any organization’s long-term health.

Even while many manufacturing companies continue to seek ways to hire more employees (e.g., skilled labor and trades people), many others face recessions or adjustments in demand or supply chain disruptions and may have to lay off employees, temporarily or permanently.

Increased legal liability can be among the unintended consequences of layoff decisions. Therefore, once any workforce reduction is determined to be necessary, rather than being fast and reactive, a company should take a comprehensive and strategic approach to minimize the potential for or impact of subsequent litigation. Manufacturers should use objective criteria when selecting employees for layoff, as the company may have to defend the basis for its decisions later.

A successful workforce reduction process requires careful and early planning. Before proceeding with restructuring that includes layoffs, determine the justification for the job eliminations or consolidation of positions, whether driven by financial considerations or other internal or...



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