How NOT to lay off employees
Let’s make a little scenario, where you undergo the following experience.
You work for a mid-size Internet company. One day, you receive an email from the CEO to all employees announcing there are upcoming layoffs and restructuring. The email’s subject reads, “Important Updates – Please READ.” Why not mentioning directly about layoffs in the subject – the main subject of the email? In brief, the email (see the image below – I outlined the most “interesting” passages) states that few people will be laid off and the decision to lay certain people off is not based on their performance. It then uses terms such as “aligning business lines” and “reducing costs” as justifications for a layoff and stops short of being outright ridiculous.
It is about 2pm. In about 30 minutes, you are cartered to the HR manager’s office, where you find quite a few of your colleagues crammed into a tiny space, all of you standing and facing the HR manager – she is seated. You are told that you are to leave the company. No further elaboration – it is all in the email, you are told. It all goes for few minutes only and you are then dismissed. You inquire about how you will handover your tasks and to whom – you assume before the end of the month. You are however told that indeed that day is to be your last day – you have 3 hours to handover all of your tasks.
You then return to your office. It is about 2:35pm. You open your Outlook and try to check your email. Your Outlook responds with “authorization failure.” You later discover that, during the time (5 mins) you were in the HR office, your email account has been blocked.
Below is the list of points of how the scenario unraveled, a case study of how NOT to lay off employees.
- sending an email about upcoming layoffs, containing vague terms and no solid reasoning;
- not giving an advance warning to affected employees (making the day of email announcement also the last day for affected employees);
- ignoring employee-employer relationship specifics as written in contracts signed between employees and the employer (and the labor law – subject to sue the company);
- inconsistently selecting employees to lay off (in some cases, not even consulting an employee’s immediate supervisor/manager);
- making the employee layoff in an impersonal way (by bringing them all together to a room and the HR manager informing them that they are to go);
- blocking access to email account/internet (again without any prior warning) for affected employees shortly after they were told to leave;
- not offering to affected employees reasons/explanations leading to their layoff;
- not letting affected employees to organize a handover of their work ;
- claiming “there is nothing personal – it is only business” but contradicting it by saying that decision to lay off is not based on performance, which provides a direct or indirect measure of contribution to the business/output of the employee.
P.S. This happened in a company I worked for.