You are a senior vice president with responsibility for a major business division in a large company. The CEO has decided that the fi rm has to cut costs and that a large layoff of associates is necessary. He has asked you to decide how many associates should be laid off in your division. You know that the CEO wants a signifi cant reduction in costs, which points to the large layoff. Of course, a layoff has a substantial effect on associates’ lives.

Should you recommend a large layoff to please the CEO or a smaller one, justifying a smaller layoff with plans to save money in other areas and increase sales? Explain your reasoning.