Current Events Based on HR-Related Issues – Essay Example

The paper "Current Events Based on HR-Related Issues" is an exceptional example of an essay on human resources. Volvo, the company that manufactures trucks announced that it is cutting 2,000 jobs following a drop in third-quarter profits that resulted from investments in new models and an increasing Swedish krona (BBC News, 2013, October 25). The company announced that income dropped from 3.38 billion kronor last year to 2.50 billion kronor this year. According to the CEO, Olof Persson, the demand for commercial vehicles in Europe has been suppressed by a recession that lasted eighteen months and ended this year. This has led to a slump in sales of heavy commercial trucks forcing the company to renew most of its products in an attempt to keep up with competition in the industry. These factors including a drop in the company’s shares have pushed influenced Volvo’s decision to lay off part of its workforce, which consists of approximately one hundred and twenty thousand employees by two thousand people. Relevance to HR Layoffs is among the key issues that Human Resource professionals deal with, companies lay off employees for various reasons, usually a blend of factors rather than one single factor. Decisions to lay off workers are mainly influenced by the decline in profits, restructuring and poor economic conditions (Snell & Bohlander, 2013). In laying off employees, Human Resource must consider issues such as stress reduction among remaining workers who may experience stress factors like the loss of co-workers, increased responsibilities, or the fear that they might be next to lose their jobs (Snell & Bohlander, 2013). Human resource professionals are also involved in deciding on how layoffs should be declared, and looking into alternatives to layoffs before implementation.