There are several reasons why a RIF might occur. RIFs can happen when a business changes direction, restructures, permanently closes an office or branch, moves to a new location, undergoes a merger, is acquired by another company or faces financial hardship.

What causes a reduced force?

A reduction in force (RIF) is when an employee is let go from a company due to budgetary reasons, workforce planning initiatives, position eliminations or other right-sizing events. Reductions in force are typically permanent because the roles of those let go are usually eliminated with the termination of employment.

How do you explain a reduction in force?

A reduction in force (RIF) occurs when a position is eliminated with no intention of replacing it and results in a permanent cut in headcount. An employer may decide to reduce its workforce by terminating employees or by means of attrition.