Layoffs Not An Option For Some Businesses

Marvin Windows and Doors, a Minnesota company, hasn't laid off any of its 5,300 workers — despite the collapse of the housing market. Its sales were flat in 2008 and have fallen this year.

"We can't easily replace skilled craftspeople and their decades of experience," said Susan Marvin, president of the company.

Instead, Marvin Windows and Doors has trimmed the time factory workers are on the clock — from 40 hours a week to 32. It's a sacrifice David Peterson, who is 56 and has worked there for five years, is willing to make.

"You may have your hours cut, and that's not easy," said Peterson, who maintains machinery for the company. "But you still have your job, which gives me a lot of peace of mind."

Layoffs typically mean companies have to pay severance costs, which vary widely by occupation and industry. A retail clerk, for instance, might cost a company $1,000 in severance. A low-level white-collar manager paid $50,000 a year could get $5,000.

And higher-paid professionals who earn well into six figures — accountants and lawyers — could get $50,000 in severance, estimated Terry Connelly, dean of Golden Gate University's Ageno School of Business in San Francisco.