Which of the following could be considered a justification for a layoff?

A justification for a layoff based on changes in market demand is grounded in economic realities that many businesses face. When market conditions shift—such as a decline in customer demand for a product or service—it can necessitate reductions in the workforce to maintain financial stability. Companies must adapt to fluctuating markets, and layoffs can be a strategic decision to align staffing levels with current business needs. This approach demonstrates a proactive response to external factors affecting the organization, focusing on sustainability and longevity rather than personal preferences or internal errors.

In contrast, personal preferences of management would not represent a sound justification for layoffs, as decisions driven by subjective opinions could be seen as arbitrary and potentially discriminatory. Employee performance ratings, while important for overall organizational effectiveness, typically inform individual development or promotion decisions rather than justify broad layoffs. Finally, staffing errors by HR should ideally be resolved through other means, such as better hiring practices or employee training, rather than resorting to layoffs. Therefore, focusing on changes in market demand reflects a logical and necessary approach to adapt to the economic landscape and maintain the viability of the organization.