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What would a company do if they are short on cashflow and orders?
by pas 5y ago
What would a company do if they are short on cashflow and orders?
- gambiting 5y agoGo bankrupt? Borrow money to pay your staff? Ask various institutions for help? Arrange some kind of deal with your employees where you will pay them later if they agree to wait? Like, "letting someone go because we ran out of money" is not a valid reason for dismissal.
- pas 5y agoGoing bankrupt leads to the same result. During the bankruptcy proceedings labor has no claims. Many many firms already cover payroll with loans, eventually financiers will stop extending credit. That said, layoffs are legal, if the firm goes through the required steps.