Closing down a factory, while leaving many people unemployed, to increase profits is only as acceptable as severity of the situation in which the company has to shut down. When such a big establishment as a company closes down, many people are left without a job and considering today's economy, it is difficult to find a new one. IF this happens because the owner and/or shareholders want to maximize profit, it unacceptable to purposely take away livelihood of so many people because of greed. However, there are cases when it's unavoidable and otherwise the whole company would bankrupt. In that case, the employees should be notified as soon as possible, which would give them time to find another job. Also, they should be given certain amount of money to take care of themselves and their families until they find new placement. This is not necessarily the solution to the problem, but it definitely helps to ease this kind of situation.
An example of this situation is a close down of Peugeot Citroen factory in France. This factory was one of the pillars of French industry and this announcement was a shock to its 8,000 employees. Toyota sold less cars than expected this year and lost 700m Euros and is struggling to save another 1b Euros. François Hollande's Socialist government immediately responded with questions and concern about the future ex-employees. Peugeot promised to take care of these people, expecting 6,500 to be voluntary redundancies and 1,500 workers will be redirected within the company.
SOURCE: http://www.guardian.co.uk/business/2012/jul/12/peugeot-citroen-cuts-jobs-close-factory-france
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