When companies begin to see a difficult economic situation, they look for ways to reduce spending and overcome their financial shortfalls. N. Fredric Crandall, founder of the Center for Workforce Effectiveness, argues that most organizations at some point face the difficult task of downsizing (3). He also argues that payroll remains at the top of the list of harmful expenses; is repeatedly the largest company owned (5). With the economy shifting through thick and thin, American companies are seeking financial stability through layoffs over other employee-friendly processes. In American society, the act of firing in terms of seeking financial stability has been present for many years. New York Times business writer Louis Uchitelle provides an insight into the history of layoffs and the financial benefits to corporate America. Before 1980, layoffs were, in most cases, associated with declines in production and sales, with laid-off workers returning or being called back to work when conditions improved (4). Continuing into the 1980s, larger proportions of layoffs were caused by factories and offices going out of business and were, consequently, permanent (4). As the economy improved in the 1990s, layoffs continued, even at profitable firms, indicating a change in past practices ( 4 – 5 ). What drives American companies to seek a tool for financial stability in today's society? Some of the leading causes of layoffs and financial instability for American businesses include technological advances, international competition, changing customer demands, economic downturns, and poor business management. Although these reasons can be seen as an ally for the company, they c...... half of the documents have their disadvantage, American companies, clearly seeing the advantages, can find financial stability in the global market. economic situation. Works Cited Calabresi, Massimo. "The Ripple Effect". Time 174.11 (21/09/2009): 32-34. Print.Crandall, N. Fredric. The workforce solution: How to reduce compensation costs and retain the best people. New York: McGraw-Hill, 2003. PrintDowns, Alan. Management miracles. Boston: Prentice Hall, 51-53. PrintHironimus – Wendt, Robert J. “The Social Costs of Worker Displacement.” Social Policy.Spring/Summer 2007: 83 – 89. Print.Uchitelle, Louis. The disposable American: layoffs and their consequences. New York:Knopf, 2006. Print.Tonno, Cari. “Weighing leave vs. Dwell time." Wall Street Journal April 13, 2009: B6. Network. January 29, 2011. < http://online.wsj.com/article/SB123938638933208987.html>