In this March 27, 2020, file photo, a man walks...

In this March 27, 2020, file photo, a man walks past the Cafe Du Monde restaurant, which was closed but has since reopened, in the French Quarter of New Orleans. With stubborn inflation and higher costs, layoffs at small businesses are sometimes a necessity. U.S.-based employers announced 64,789 cuts in April, down 28% from 90,309 cuts announced in March, according to a report by global outplacement and business and executive coaching firm Challenger, Gray & Christmas, Inc. Credit: AP/Gerald Herbert

NEW YORK — With stubborn inflation and higher costs, layoffs at small businesses are sometimes a necessity.

U.S.-based employers announced 64,789 cuts in April, down 28% from 90,309 cuts announced in March, according to a report by global outplacement and business and executive coaching firm Challenger, Gray & Christmas, Inc.

But Andrew Challenger, senior vice president at the firm, said he expects more cuts going forward.

“The labor market remains tight. But as labor costs continue to rise, companies will be slower to hire, and we expect further cuts will be needed," he said. "This low April figure may be the calm before the storm."

Here’s how to handle letting people go in a professional manner:

First, make sure you're complying with regulations related to layoffs. The federal WARN act, or the Worker Adjustment and Retraining Notification Act, requires a 60-day notice about a planned closing or mass layoffs. But that's only for employers with 100 or more employees.

Some states have their own WARN act with different rules. For example, New York State's WARN Act applies to private businesses with 50 or more full-time employees in New York State.

File - Early-morning light shines on shops on Main Street,...

File - Early-morning light shines on shops on Main Street, June 11, 2022, in Bar Harbor, Maine. With stubborn inflation and higher costs, layoffs at small businesses are sometimes a necessity. U.S.-based employers announced 64,789 cuts in April, down 28% from 90,309 cuts announced in March, according to a report by global outplacement and business and executive coaching firm Challenger, Gray & Christmas, Inc. Credit: AP/Robert F. Bukaty

Next, craft a layoff plan. Choose a date for the layoffs and a date for notification. Send a notification to employees privately, and avoid doing more than one round of layoffs if possible.

Make sure you're clear on the reason for the layoffs and update staffers on severance, unemployment benefits and COBRA health insurance. You also could offer to write a letter of recommendation for the employee.

People on Long Island share their thoughts on President Joe Biden's decision to drop out of the 2024 election and the possibility of Vice President Kamala Harris becoming the Democratic nominee. Credit: Newsday/Kendall Rodriguez; Jeff Bachner; File Footage

'I think it's the best for the country' People on Long Island share their thoughts on President Joe Biden's decision to drop out of the 2024 election and the possibility of Vice President Kamala Harris becoming the Democratic nominee.

People on Long Island share their thoughts on President Joe Biden's decision to drop out of the 2024 election and the possibility of Vice President Kamala Harris becoming the Democratic nominee. Credit: Newsday/Kendall Rodriguez; Jeff Bachner; File Footage

'I think it's the best for the country' People on Long Island share their thoughts on President Joe Biden's decision to drop out of the 2024 election and the possibility of Vice President Kamala Harris becoming the Democratic nominee.

Latest Videos

YOU'VE BEEN SELECTED

FOR OUR BEST OFFER ONLY 25¢ for 5 months

Unlimited Digital Access.

cancel anytime.