A staffing reduction occurs when an employer must eliminate one or more staff positions.

Staffing reductions are usually a response to revenue shortfalls. However, a staffing reduction may result from reorganization or lack of work.

Employers can respond to staffing reduction situations in many ways, including:

• Hiring controls
• Redeployment of staff
• Separation incentives
• Outplacement assistance for staff
• Layoff

Depending on the size and scope of the staffing reduction, employers may use more than one strategy.