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Furloughs can lead to financial instability for employees, as they may face reduced income or uncertainty about their job security, which can impact their mental health and motivation. Employers may struggle with maintaining team cohesion and morale, as disconnected employees can feel undervalued or disengaged. Additionally, furloughs may disrupt business operations, leading to challenges in project continuity and potential loss of talent if employees seek other opportunities during their time off.

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