Answer to Question 1
c
Answer to Question 2
Instead of layoffs, organizations often reduce their employee headcount in other ways. Attrition is the normal reduction of a firm's workforce due to the retirement, death, or resignation of employees. Combining natural attrition with a hiring freeze, which involves not hiring any new employees to replace departing employees, can result in a sufficient amount of headcount reduction, if the attrition is high enough and the freeze can be imposed for a long enough period of time.
Early retirement and buyout incentives are a good way to achieve attrition and are often well received by employees. Companies often fund early retirement and buyout incentives with money they save during hiring freezes. Another way to reduce the size of a company's workforce is to encourage employees to take a leave without pay. Although an employee's benefits are usually reduced during the leave, the company guarantees that the employee can return at the end of a designated period. Leaves without pay can appeal to some employees who need to complete their education, care for family, or transition to another career. When the company wants to downsize to cut its costs rather than meet a mandated reduction in the number of employees, this can be a good strategy.