Losing employees can have several effects on your budget planning, both short-term and long-term. **Short-term effects:** 1. **Cost Savings:** You may save money salaries, benefits, and other employee-related expenses immediately. 2. **Severance Costs:** If you provide severance pay, this can create a short-term expense that impacts your budget. 3. **Reduced Productivity:** Fewer employees might lead to lower productivity, which can affect revenue and increase costs in the short run. **Long-term effects:** 1. **Operational Changes:** You may need to adjust your operations, which could lead to new costs or savings over time. 2. **Hiring Costs:** If you need to hire new employees later, recruitment and training costs can impact your budget. 3. **Employee Morale:** Layoffs can affect the morale of remaining employees, potentially leading to higher turnover and associated costs in the future. Overall, while you might save money in the short term, the long-term effects can vary based on how you manage the changes.