How to fire people the right way
Laying off employees is never easy for any company, especially in today’s world, where the current tech layoffs are leaving many people jobless. Google, Microsoft, Amazon, Meta and other tech companies have laid off more than 70,000 employees in the last year alone.
Losing a job can be devastating, leaving individuals feeling hurt, frustrated, and hopeless. Hence, companies must handle layoffs with empathy, transparency, and fairness to minimise the negative impact on the affected employees, their families, and the remaining employees.
Firing people the Chesky way
Airbnb’s CEO, Brian Chesky, made headlines in May 2020 for handling the company’s layoffs compassionately and transparently. Chesky had to lay off nearly 2,000 employees. Still, Instead of delivering the news in an impersonal way, he took the time to consistently engage with the affected employees, warmly delivering the news and offering support. He also explained that the company would provide severance pay, extended health benefits, and career transition support to affected employees. Chesky’s handling of the layoffs was widely praised for showing empathy and caring for his employees. He also ensured that the company’s remaining employees were aware of the situation step by step, ensuring a supportive work environment.
Firing people the Musk way
On the other hand, Elon Musk’s approach to layoffs at Tesla was criticised as lacking empathy. In 2018, Musk announced through an email to all employees that the company would be laying off 7% of its workforce. The email caused confusion and uncertainty among the staff, leading to negative press coverage. Even more jarring is how he recently cut around 3,700 Twitter employees (About half the staff strength). Since then, significantly more employees have quit after Musk changed some policies around working from home and wrote that he expected all employees to commit to a “hardcore” work environment. One manager tweeted, “Looks like I’m unemployed, y’all. Just got remotely logged out of my work laptop and removed from Slack.”
This approach was seen as cold and insensitive, as it failed to recognise the human impact of layoffs. Curzon PR CEO, Farzana Baduel comments, “In the tech industry, where talent is in high demand, companies that handle layoffs correctly are more likely to attract and retain top talent in the future. It’s not just about what’s legal or ethical, but also about taking a human approach with empathy at the core.”
HR professionals agree that empathy is vital when handling layoffs. Karen Gately, an HR expert, states that “Never lose sight of how the decisions you make or those you support have on the people in your organisation. While of course, it’s necessary to take reasonable steps to protect the business, the sensitivity with which you communicate and implement those tough decisions is critical.“
Here are 5 Points to bear in mind when letting people go:
- Communicate transparently: Communication is key in handling layoffs. It is important to explain the reasons behind the layoffs and how you arrived at the decision. This helps to build trust and avoid rumours and speculation.
- Offer support: Provide support to affected employees, such as severance pay, and extended health benefits, This shows that the company cares about its employees and is committed to helping them move on to their next opportunity.
- Be empathetic: Companies should handle layoffs with empathy and understanding. This means acknowledging the impact on affected employees and their families and being sensitive to their needs.
- Provide career transition support: Companies should set up the affected employees to find their next opportunity. This can include offering career counselling, resume writing, interview preparation tips and even references where possible.
- Treat everyone fairly: Companies should ensure that the layoffs are handled fairly and consistently, without any discrimination.
It’s also essential for companies to communicate openly and transparently with their remaining employees, explaining the reasons behind the layoffs and the steps being taken to support affected employees. This helps to maintain employee morale and prevent negative press coverage.
Curzon PR is a London-based PR firm working with clients globally. If you have any questions, please feel free to contact our Business Development Team bd@curzonpr.com
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