Legal Issues in Reduction of Workforce Simulation: FastServe, Inc.
FastServe, Inc is a marketing company of sports apparel with revenues of $25 million dollars and a workforce of 350 employees. In order to target the population interested in sport activities, also known as Generation Y, FastServe opened an online marketing and distribution channels. One of these channels is for boys and the other one for girls. The company transferred 10% of its workforce over the online distribution department. Nevertheless, website issues concerning the 3-D drape-n-see mannequin made the downloading process for customers very difficult. As a result, customers are not being able to order products due to this problem. The lack of online sales has led the company to downsize the company’s workforce.
FastServe, Inc must make planned decisions concerning the process of downsizing the company. Management needs to take into account the potential discrimination claims that the company could face by its laid off employees. They need to base their decisions not only on individuals’ skills or their contributions to the company, but also how these individuals can be dismissed in an ethical and a legal manner. Obviously, the downsizing of the company is inevitable after their decision of leaving the online distribution market. However, FastServe management still facing the dilemma concerning who will be suited to perform new tasks in accordance with the company’s new direction and who will need to leave and look for other opportunities outside the company.
This paper addresses the issues related to the legal aspects concerning the reduction of workforce in FastServe, Inc. It also provides insights of the legal issues that th ...