Management of Gala Bingo underwent a company wide restructuring. The restructuring will last for about a month. After closing five clubs, employees of Gala are wondering whether or not they will still have jobs after the restructuring. The company struggled financially after the governments’ decisions to ban smoking. The effects produced a huge gap the in company’s trade. As a result, the company is struggling to pay the bank’s interest rates.

The restructuring will affect managers and team leaders within the company’s 150 clubs. The result of the restructuring will cut off 50% of the total position in the company. The roles and responsibilities of two or three positions will be fused into just one position. The management understands that their employees may find it hard to accept that they will be soon losing their jobs. However, the management has to take measures to protect its interest. Most of the employees who were first layed off were those who were on vacations and maternity leaves.

To quote a memo passed from Gala to its employees, “As you are aware, the bingo industry has, over the past two years, faced an unprecedented level of decline due to the impact of the smoking ban and punitive legislative change. As a result the company has reviewed every aspect of its business and a key part of this is the way in which our clubs are structured to meet the challenge."

With the worldwide crisis going on, Gala Bingo is not the only company who is experiencing the same challenge. This is not new to everyone. In order for the company to survive, management has to do “cross cost cutting”. With people being laid off every day, it is in the hands of the government on what to do with these employees. Programs that will aid the family of the laid off employees should be organized earlier to reduce further damages within the family and the society as a whole. 

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