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It was an attempt to purge staff without paying severance, said the presenter.
After paying severance packages and higher commissions, Allstate says the move is actually costing the company money.
The company disguised the mass layoff as individual firings of nonperforming workers, they said, to avoid paying severance benefits.
Hospital closings can carry steep short-term costs, like paying off outstanding debts, paying severance to workers, and converting acute-care buildings to outpatient clinics.
The company said it did not know how much it would save, compared with paying severance, or how many employees would be adversely affected.
Included was the cost of paying severance to hundreds of investment bankers and traders whom Morgan Stanley laid off this year.
Similar(42)
The workers will be paid through Tuesday, but they will not be paid severance.
Employers, for instance, do not have to pay severance to laid-off temps.
When they fire someone, they don't pay severance," Pavlov said in an interview.
After its actions were disclosed, the company paid severance to many of the workers.
Hershey paid severance and worked to place employees in other jobs.
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