Recession Risk and Workforce Reorganizations: Key Considerations

Recession Risk and Workforce Reorganizations: Key Considerations

August 2022, Covington Alert

As concern over a possible global recession continues to grow, many companies will consider workforce reorganizations as a way to reduce costs in light of geopolitical and economic uncertainties, flagging demand, and an unclear outlook for recovery. In the alerts below, we focus on issues arising from implementing voluntary separation programs ("VSPs") and reductions in force ("RIFs"), as well as issues that can arise in a transactional context where external factors – such as the onset of a global recession – cause the parties to re-think their integration plans.

If your company is considering a workforce reorganization in the U.S. or internationally, we encourage you to contact anyone in our Global Workforce Solutions practice.