1. What criteria should be used to determine potential laid-off candidates? What emphasis, if any, should be given to non-job-related factors such as personal problems or a spouse’s need to work? Explain.
2. What should be included in a severance package for laid-off employees? How long should the severance package last? Explain.
3. Are there any potential legal implications in Martinez’s decision? Explain your answer.
4. How would you handle the termination interview? Explain.

The figures are staggering—8.7 million workers were involuntarily displaced in the United States between 2000 and 2003. In 2004 alone, there were 4,879 mass layoffs that affected 956,327 individuals. The reasons for mass layoffs include expanding global competition, a dynamic domestic business environment, organizational mergers, and companies unable or unwilling to adapt to rapid change.
Beyond layoffs of large numbers of employees at major corporations, the economic environment of recent years has forced layoffs of small groups of employees— or a single employee—when economic conditions warrant a reduction in company size. These incidents affect the lives of both employees and their managers, as this case illustrates.