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The reason why a WARN notification is required in this scenario is that the Worker Adjustment and Retraining Notification Act (WARN) mandates that employers with 100 or more employees must give notified employees at least 60 days in advance of a mass layoff or plant closing. A mass layoff is generally defined as a reduction in force that will result in job loss at a single site of employment during any 30-day period for 50 or more employees.

In this case, laying off 40% of 600 employees means that 240 employees would be let go, which significantly exceeds the 50-employee threshold set by WARN. Because the planned reduction is substantial, it fulfills the criteria for a mass layoff. Hence, the notification is necessary to ensure that affected employees are informed and can prepare for their transition, in line with the protective aims of the WARN Act.

The other options do not adequately address the specifics of the WARN Act or misunderstand the thresholds and requirements that trigger necessary notifications.