5. Make sure you follow all legal and regulatory guidelines

When employment laws get violated, the cause is rarely a conscious decision made by someone. The most frequent cause is sloppiness —not following guidelines or inconsistent application of policies. Make sure that all managers involved in the headcount solution:

• Are well versed in their accountabilities under employment laws.

• Act consistently with respect to all policies and procedures.

• Act with sensitivity and compassion.

• Document all their decisions, including the analyses carried out to assess whom to cut and whom to keep.

Most employment law experts suggest that you have a snapshot of employees before and after cuts are made. If the comparison of the two appears to hit a protected group disproportionately, make sure your actions are defensible in terms of the business relatedness of your decisions and assurances of consistency in practice.