Although redundancies are sometimes inevitable it’s best to try to cut costs in another way before resorting to this.  Redundancies are not only costly in themselves but they also reduce staff morale and mean a business could lose competent staff or create a skill imbalance.

Instead of resorting straight to this option why not look at doing a cost cutting exercise.  Spend some time looking closely at what is spent and what is wasted to see how you can better manage the business finances.