| Re: preemptive layoff
There are no pros. If you are laying people off preemptively then you are doing it before it is absolutely necessary. This implies that the marginal revenue that you get from employing each labor unit is greater than the marginal cost. I am simplifying matters here, but essentially what i ma saying is that it is not preemptive if the employees are costing you money and you could run more efficiently without them. One must include the cost of turnover when considering whether or not to layoff employees.
As for the ethics, that is a bit les certain. I am not sure that there is an ethical basis for employment. That would have to be determined on a case by case basis and it would certainly depend upon the relationship between each employer and each employee. One would have to look at length of employment, implicit and explicit agreements, past history of the employer, the industry, the financial strength of the company, and its severance package, among other things.
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