Leo's Superstore More than 90% of CEOs believe a recession is coming in the next 12 months,

Fantastic news! We've Found the answer you've been seeking!

Question:

Leo's Superstore More than 90% of CEOs believe a recession is coming in the next 12 months, according to a recent KPMG survey. With payroll generally the biggest expense on a business's books, some are eyeing hiring freezes or layoffs. But for others, investing in employees might be the smartest way to become recession proof, and some workplace leaders are exploring the best ways to retain and reshuffle teams in a leaner economy.

Thoughtful companies "know that they need their really great people when times are uncertain to face all the challenges that their business is about to face," said Michael Bush, CEO at Great Place to Work, an HR consulting and research firm that works with companies to improve organizational culture. Bush said that companies that are "obsessed" with their employees understand that workers are crucial to achieving business goals. For them, making sure top talent stays and stays engaged is the name of the game.

The economic situation for 2023 has grown increasingly grim, and companies of all sizes have had to make difficult choices. Inflation is over 6%, interest rates are rising, personal debt is at an all-time high, and there is global uncertainty related to the war in Ukraine. Many organisations are contemplating reducing their workforce.

As the CEO of Leo's Superstore - a large retail organization employing 25,000 employees in Canada - you must plan for the potential recession. Given the immediate financial pressure you face from shareholders, you are forced to make some difficult decisions about downsizing, including a 25% reduction of the current workforce. You have asked your HR department to make a report and address the following themes related to the economic slowdown.

Draft a word memo from the CEO to all employees and address the following key issues:

o Why is the downsizing happening?

o When will the downsizing happen?

o How will all employees be supported before, during and after the downsizing?