Comments on: How to Manage a Layoff http://www.2-speed.com/2007/07/how-to-manage-a-layoff/ Entrepreneurial Leadership and Management . . . and Other Stuff Thu, 11 Mar 2010 21:56:04 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Venture Hacks — How do I lay people off? http://www.2-speed.com/2007/07/how-to-manage-a-layoff/#comment-41544 Venture Hacks — How do I lay people off? Fri, 17 Oct 2008 14:16:00 +0000 http://www.2-speed.com/2007/07/how-to-manage-a-layoff/#comment-41544 [...] more tactical advice in How to Manage a Layoff, Layoffs and Creativity: Are You Expelling the Innovators?, and The Art of the [...] [...] more tactical advice in How to Manage a Layoff, Layoffs and Creativity: Are You Expelling the Innovators?, and The Art of the [...]

]]> By: unfair factory layoff http://www.2-speed.com/2007/07/how-to-manage-a-layoff/#comment-27578 unfair factory layoff Sat, 21 Jun 2008 21:45:03 +0000 http://www.2-speed.com/2007/07/how-to-manage-a-layoff/#comment-27578 [...] you go ballistic on me, let's ... Before you go ballistic on me, let&8217s first define a layoff.http://www.2-speed.com/2007/07/how-to-manage-a-layoff/??? GM to close Oshawa truck plant, four ... - Guelph MercuryThat means 2900 layoffs in Oshawa. The [...] [...] you go ballistic on me, let’s … Before you go ballistic on me, let&8217s first define a layoff.http://www.2-speed.com/2007/07/how-to-manage-a-layoff/??? GM to close Oshawa truck plant, four … – Guelph MercuryThat means 2900 layoffs in Oshawa. The [...]

]]> By: Will http://www.2-speed.com/2007/07/how-to-manage-a-layoff/#comment-24119 Will Wed, 02 Apr 2008 22:54:35 +0000 http://www.2-speed.com/2007/07/how-to-manage-a-layoff/#comment-24119 Margaret, That really sucks. I'm very sorry to hear about what happened to you. 28 years is a long time and shows a lot of dedication to your job and employer. I certainly don't know what your situation is, nor the company's, but it sounds like you see the situation as being very unfair to you. I'm afraid that that is not all that unusual - most company's screw up the process. That is, the process of retaining AND letting people go. Good luck with things moving forward. I hope you find a way to deal with what is obviously a very painful situation. Margaret,

That really sucks. I’m very sorry to hear about what happened to you. 28 years is a long time and shows a lot of dedication to your job and employer. I certainly don’t know what your situation is, nor the company’s, but it sounds like you see the situation as being very unfair to you. I’m afraid that that is not all that unusual – most company’s screw up the process. That is, the process of retaining AND letting people go.

Good luck with things moving forward. I hope you find a way to deal with what is obviously a very painful situation.

]]> By: Margaret Martin http://www.2-speed.com/2007/07/how-to-manage-a-layoff/#comment-24108 Margaret Martin Wed, 02 Apr 2008 20:03:40 +0000 http://www.2-speed.com/2007/07/how-to-manage-a-layoff/#comment-24108 I truly feel like I was a target. I had great reviews with all my past managers I was a great employee and very loyal. I worked 28 and half years for this company. My goal was to retire with this company but it was not their goal. I blame my self for trusting them for all of twenty eight. The only way I seem to cop with what they call a workforce restructior a new legal name is to keep writing to people and never let them forget what they have done to my life. I truly feel like I was a target. I had great reviews with all my past managers I was a great employee and very loyal. I worked 28 and half years for this company. My goal was to retire with
this company but it was not their goal. I blame my
self for trusting them for all of twenty eight. The only way I seem to cop with what they call a workforce restructior a new legal name is to keep writing to people and never let them forget what they have done to my life.

]]> By: Will http://www.2-speed.com/2007/07/how-to-manage-a-layoff/#comment-7948 Will Fri, 10 Aug 2007 13:21:09 +0000 http://www.2-speed.com/2007/07/how-to-manage-a-layoff/#comment-7948 Stephen, Your point about doing the layoffs prior before becoming insolvent(or even just having minimal cash) is really what it's all about. If you know enough about your business to see it coming, you're 7/10ths of the way there. Most people are blind-sided and do the layoffs as a knee-jerk reaction. Knowing ahead gives you loads more flexibility. On outplacement. Some might dismiss this as something only "big" companies do, but as you suggest, outplacement can take various forms, including just a promise of writing recommendations for the employees' next job. Stephen,

Your point about doing the layoffs prior before becoming insolvent(or even just having minimal cash) is really what it’s all about. If you know enough about your business to see it coming, you’re 7/10ths of the way there. Most people are blind-sided and do the layoffs as a knee-jerk reaction. Knowing ahead gives you loads more flexibility.

On outplacement. Some might dismiss this as something only “big” companies do, but as you suggest, outplacement can take various forms, including just a promise of writing recommendations for the employees’ next job.

]]> By: Stephen Coutts http://www.2-speed.com/2007/07/how-to-manage-a-layoff/#comment-7527 Stephen Coutts Mon, 30 Jul 2007 23:25:23 +0000 http://www.2-speed.com/2007/07/how-to-manage-a-layoff/#comment-7527 In addition to the excellent points that you have made above, I would add the following: - if the company is headed toward bankruptcy, make the decision and the layoffs before entering the zone of insolvency, while one still has the cash to create a safety net for the employees (COBRA, severance, outplacement); this will allow one to secure releases from those outplaced, an important feature for retaining title to any IP assets that remain in the company. - coordinate with IT to freeze computer systems on the day that the layoff is announced to prevent malicious file destruction or theft of company information by those layed off. - Arrange for an outplacement service to wait in the wings to talk to the employees once the CEO or HR has told them what is happening and why; have outplacement packages ready so that the employees can see a path toward getting their next job. These points are off the top of my head as I read your article and recally the full shut down that I had to supervise at my last (biotech) company. In addition to the excellent points that you have made above, I would add the following:

- if the company is headed toward bankruptcy, make the decision and the layoffs before entering the zone of insolvency, while one still has the cash to create a safety net for the employees (COBRA, severance, outplacement); this will allow one to secure releases from those outplaced, an important feature for retaining title to any IP assets that remain in the company.
- coordinate with IT to freeze computer systems on the day that the layoff is announced to prevent malicious file destruction or theft of company information by those layed off.
- Arrange for an outplacement service to wait in the wings to talk to the employees once the CEO or HR has told them what is happening and why; have outplacement packages ready so that the employees can see a path toward getting their next job.

These points are off the top of my head as I read your article and recally the full shut down that I had to supervise at my last (biotech) company.

]]> By: Will http://www.2-speed.com/2007/07/how-to-manage-a-layoff/#comment-7033 Will Fri, 20 Jul 2007 14:15:45 +0000 http://www.2-speed.com/2007/07/how-to-manage-a-layoff/#comment-7033 Nick, Your point about being able to offer severance packages because you did the layoffs before it was an emergency says it all. If you're close enough to your business and what's going on you can do that kinda of stuff. Response is almost always better than reaction. The better you are at managing your overall business, whether things are going well or not, the better you can deal with situations like this. Nick,

Your point about being able to offer severance packages because you did the layoffs before it was an emergency says it all. If you’re close enough to your business and what’s going on you can do that kinda of stuff. Response is almost always better than reaction. The better you are at managing your overall business, whether things are going well or not, the better you can deal with situations like this.

]]> By: fewquid http://www.2-speed.com/2007/07/how-to-manage-a-layoff/#comment-6977 fewquid Wed, 18 Jul 2007 18:04:09 +0000 http://www.2-speed.com/2007/07/how-to-manage-a-layoff/#comment-6977 That's a great list. I've been with two companies that took the "death by 1000 cuts" approach to layoffs and it's deadly. Chopping off an arm or a leg is no fun, but it sure beats waking up each morning to find that some random appendage has been nibbled off in the night... Morale gets crushed and you are far more likely to lose the good folks that you need in order to survive as a company. When I had to do a significant layoff (9 out of a team of 25), I got everyone being laid off in a room and told them simultaneously, giving all of them the chance afterwards to sit down one-on-one with me after the meeting. I then met with the rest of the team and explained what was going on. Of the 9, only 3 were suprised and only 1 was angry. I was able to negotiate generous severance packages for everyone _because_ we had made the cut before the situation was desparate. It wasn't fun, but it was the right thing to do and the business was able to get back on track. That’s a great list. I’ve been with two companies that took the “death by 1000 cuts” approach to layoffs and it’s deadly. Chopping off an arm or a leg is no fun, but it sure beats waking up each morning to find that some random appendage has been nibbled off in the night… Morale gets crushed and you are far more likely to lose the good folks that you need in order to survive as a company.

When I had to do a significant layoff (9 out of a team of 25), I got everyone being laid off in a room and told them simultaneously, giving all of them the chance afterwards to sit down one-on-one with me after the meeting. I then met with the rest of the team and explained what was going on.

Of the 9, only 3 were suprised and only 1 was angry. I was able to negotiate generous severance packages for everyone _because_ we had made the cut before the situation was desparate.

It wasn’t fun, but it was the right thing to do and the business was able to get back on track.

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