4 Valid Reasons Your Company Retrenched You

Retrenchments are usually near impossible to accept since they often come out of the blue. A typical day at work can turn into an unexpected nightmare, sending you into instant disarray and plunging you into a string of emotional imbalance for months. If you don’t find a job to support your family and lifestyle quickly after, you’ll be trying extremely hard to make ends meet. However, this sudden shock is usually a predetermined action by your company, and there are typically good reasons for doing so. Here’s why your company will retrench you.

1. Mergers

Companies merge to combine operations, increase profits, or reduce tax costs. And while that shouldn’t take you by surprise, you need to be conscious of how impactful it’ll be on your career. Mainly, merging companies may require a bulged workforce, and in that case, you’re off the hook. However, a few occurrences may prompt your employer to retrench you not because you haven’t been loyal or deserve it. Some mergers require fewer employees to induce balance and stabilize operations, especially when they’re about to work together.

2. Company Closing

Companies, too, go through rough patches and sometimes dire straits may unexpectedly put them out of business. At the onset, it starts as a vile threat to their operations, and they may be forced to lay off staff temporarily while maintaining minimum operations to keep them above the waters. However, as the threat grows, they may turn to reductions, and perhaps you may be one of the unlucky employees. Dealing with retrenchments is often daunting and can put you into emotional imbalance. If so, you should visit https://content.mycareersfuture.gov.sg/retrenched-singapore-deal-emotions/ to get the right people around to see you through. That’ll prevent depression and imminent emotional breakdowns leading to confusion and anger.

3. Outsourcing Options

Companies usually do their best to maintain profits and perhaps, increase them. Therefore, they’ll work with entities and personnel that guarantee that. That means getting a few employees out of the wage bill and alleviating their expenses in paying for employee insurance, remunerating benefits, and servicing the salaries. That usually happens when they find independent contractors that don’t need costly training or servicing their health benefits. Unluckily enough, that may have a ripple effect, and the wave may reach you, terminating your stable income source indefinitely.

4. Technological Advancements

While the technology favors your company and employer, allowing them to conduct operations swiftly, it may impact you immensely. If automation takes over operations, it leads to the closure of a few departments that require manual input. And if you’re embedded within, the dreading wind will undoubtedly sweep you out, leaving you out of options. That’s a necessary take for your company to minimize costs and improve efficiency. If it happens, unfortunately, it’s best to find a way out of the unexpected shock before it wreaks havoc on your sanity.


Retrenchment is business as usual for companies but a nightmare for employees. It may leave you disgruntled and limited options to forge ahead with life, but it isn’t the end of the road. You can still move on quickly or leverage the advantage to catch up with what you’ve been missing in life, whether family time or starting a business. And if reductions impact your mental and cognitive health, you should seek professional help immediately.

Best Graphic Designers in Oklahoma / Best Graphic Designers in Ohio / Best Graphic Designers in Wyoming / Best Graphic Designers in Wisconsin / Best Graphic Designers in West Virginia

Best Graphic Designers in Washington / Best Graphic Designers in Virginia / Best Graphic Designers in Vermont / Best Graphic Designers in Utah / Best Graphic Designers in Texas