An accurate cost and benefit analysis of the proposed layoff will include?

An ecommerce giant has a strategic directive to implement the use of drones for its delivery purposes. This will enable the corporation to deliver goods within 8 hours in a 20-mile radius. The downside is the company will have to layoff 33% of its 20, 000 delivery van drivers.

An accurate cost and benefit analysis of the proposed layoff will include?
A . Costs of reduced employee engagement and morale; benefit of the accuracy of drone delivery
B . Costs of recruiting drone technology experts; benefits of wage and benefit savings
C . Costs of compliance with WARN Act requirements; benefits from implementation of corporate strategy of increased automation of operational services
D . Costs of unemployment insurance and outplacement services; benefits of reduction in overhead
costs

View Answer

Answer: D

Explanation:

Note that the question requires a focus on cost-benefit analysis of the proposed layoff, not of the drone delivery. Therefore the only option that focuses squarely on pros and cons of a layoff is D. Overhead costs include payroll, and benefits.