Chapter 1: The Ethics of Layoffs

Throughout my three-decade professional journey, I've developed a keen interest in how organizations manage layoffs. My experiences have led me to believe that the approach taken during such difficult times reflects the essence of a company and its leadership.

According to a report from Forbes, in the first quarter of this year, U.S. firms announced a staggering 257,254 job cuts, as noted by the career services firm Challenger, Gray & Christmas. Many of these layoffs were from well-known corporations and were often preceded by announcements that varied in timing—sometimes days, weeks, or merely hours before the actual cuts. Conversely, smaller enterprises frequently executed layoffs with little to no warning.

The film Office Space, released in 1999, humorously depicted the absurdity of corporate downsizing through characters posing as consultants who helped a fictional company eliminate jobs. A decade later, in the film Up in the Air, George Clooney's character Ryan Bingham articulated his role in layoffs: "…I don't work here. I work for another company that lends me out to (people like) Steve's boss who don't have the courage to dismiss their employees."

From 2011 until late 2019, during a time of significant economic growth, I was employed at a Fortune 500 company that exhibited a notably inventive approach to layoffs. This organization frequently boasted about its accolades, including placements on various "Best Places to Work" lists, with a core value centered around "Putting People First."

Despite its growth both domestically and internationally, the company routinely let go of staff members through a seemingly perpetual cycle of reorganizations. Throughout my tenure as an "associate," I witnessed annual reorgs that became so common that entire administrative departments were dedicated solely to managing these transitions.

The reasons behind these reorganizations varied significantly; some were logical, while others seemed arbitrary. For instance, at one point, leadership decided to appoint regional presidents, realigning the organizational structure under their supervision. Other reorganizations stemmed from merging departments or aligning business units under a single leader, often prompted by retirements or a notable lack of "bench strength."

In 2019, a single senior executive's promotion triggered a massive reorganization affecting multiple disciplines, including global sales, digital initiatives, and customer service—resulting in the loss of hundreds of jobs, all from the elevation of just one individual.

Interestingly, during this period, my company’s financial health appeared robust, with Wall Street indicating solid growth. While reorganizations may have contributed to maintaining earnings, they were never directly cited in press releases or analyst discussions.

The process of reorganization unfolded as follows: an announcement was made via webcast, introducing a new organizational chart, followed by a week-long window for employees to apply for positions in the revamped structure. Some employees retained their previous roles, while others were required to reapply for the same positions, often with minimal explanation provided.

After the application period, a two-week interview phase ensued, culminating in the placement of successful candidates. On the designated date for the new organizational structure to take effect, those not placed were let go. The efficiency of this method was starkly contrasted by its emotional toll on employees.

One of the more unsettling aspects of this strategy was that managers could avoid the emotionally charged conversations that typically accompany layoffs. Instead, they could simply point to the company's decision to reorganize, distancing themselves from the painful task of delivering bad news.

Despite the company's professed commitment to "putting people first," I realized I had succumbed to the prevailing mindset. I remember advising a younger colleague who was anxious about an impending reorganization that if she was uncomfortable with frequent changes, this likely wasn't the right workplace for her.

Remote employees often fared poorly during these reorganizations, as they were frequently overlooked. I was fortunate to have developed a unique skill set that made me a valuable asset, allowing me to survive multiple reorganizations. Last year, I shared insights from my experience as a long-term remote worker in an article on Medium.

Then came early 2020, when the COVID-19 pandemic hit, profoundly impacting the company. By late March, it was announced that thousands would be furloughed, with an expectation of a 60 to 90-day absence. This unprecedented pause presented an opportunity to reassess operations, with suggestions to gradually reintroduce employees as the business stabilized.

Regrettably, the company seemed stuck in its traditional ways. Long before we hit the 60-day mark, packages were offered to employees: leave the company with a severance package or remain on furlough with uncertain prospects. We were given just one week to decide, leading to an astonishing exodus of experienced employees who, frustrated with the constant reorgs, opted to leave.

The impact of this mass departure continues to resonate within the organization, fundamentally altering its culture. I was among those who chose to depart, eventually securing a new role where I reported directly to the president and CEO.

Both leaders at my new company were keen to learn about my previous employer's practices, even though they weren't competitors. When I shared how my former company managed layoffs through reorganizations, they deemed it one of the most heartless and misguided approaches they'd ever encountered.

Whether through layoffs or firings, the emotional impact on the affected employees can be profound. Those delivering the news should recognize the gravity of the situation. While reorganizations and layoffs may sometimes be necessary for a company's survival, transparency and compassion are crucial when dealing with individuals who have dedicated their efforts to the organization.

So, to the corporate world: next time a layoff becomes necessary, consider stepping away from the keyboard or video screen. A face-to-face conversation, albeit difficult, can leave the individual feeling a measure of respect despite the circumstances.

Feel free to share your thoughts in the comments, and thank you for reading.

Chapter 2: Creative Layoff Strategies

The first video titled How To Deal With a Layoff as a Creative provides valuable insights for individuals facing job loss, offering practical advice on coping and navigating the emotional landscape of being laid off.

The second video titled How to Approach Layoffs and Other Life-Changing Employee Events With Care discusses the importance of empathy and careful planning during layoffs, emphasizing the human side of corporate decisions.