The right way to handle layoffs

By Tatianna on Aprile 25 2023
Topical
Computer tied with a black and yellow tape

In recent times, big tech companies have been getting a reputation for their inability to fire their staff gracefully. Due to an economic slowdown, they have been forced to conduct massive layoffs but choose to do so in the worst possible ways.

Klarna, a fintech company, cut loose 10% of its workforce through a prerecorded video. They did not make it clear who was leaving until two days later. Another business, Better.com, fired hundreds of people in a single Zoom call accusing employees of “stealing from the company” because of low productivity.

Consequently, Continuum, a consulting start-up, began providing layoff consulting services. It offers part-time consultants to advise and devise a plan to proceed with empathy and professionalism. This helps soften the blow for those leaving and builds a positive image of the employer’s brand.

Some of the advice given by the company is:

  • Be kind to those fired, offering at least four weeks of severance pay.
  • If you must fire many people, do it at once so the employees you keep feel safer.
  • Take care of your remaining staff, and offer rewards for good performance.

In case of an economic meltdown, this allows companies to treat these employees fairly.

Teacher Rating
5
Average: 5 (1 vote)
Discussion
Please summarize the article in your own words.
What do you think Better.com could have done differently?
How does your country's companies handle economic slowdowns? Do companies layoff employees? How do they do this?
Can you think of any other recent examples of massive layoffs?
Can you think of other advice to help companies let people go?