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Seniority is often used when considering workforce reductions because the newer employees often do not have as much experience in the company as older members may have. Even though employees who have recently entered the company may have the same or more education, they have not worked at that particular job as long. Therefore they will still need training as well as time to settle in to the position.
In contrast, senior members have learned how to complete their jobs and know how the company operates. Furthermore, management knows how the senior employees operate and have become accustomed to them. If they were to fire the senior members and keep the new hires, that leaves a lot of unpredictability. The new hires may not work out for several reasons: they may not fit in to the culture of the organization, they may find a better job, the work may be too hard for them, and so forth.
Senior members have shown a continued commitment to the company, therefore they are less likely to leave. I agree with the practice because it makes sense in terms of maintaining a business. Members that have been in a position for a long period of time are less likely to leave. You run the risk of newer employees leaving for better opportunities anyway, therefore you have more to lose by firing senior employees.
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