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In recent months, major American companies such as Google, Amazon, and many prominent media outlets have faced waves of layoffs. Terminating employees is never an easy task, and the approach taken by CEOs in these challenging times often reflects their commitment to personal and business accountability. Here’s what business leaders across industries can learn from how America’s top CEOs have handled recent layoffs and how to incorporate compassion and integrity when facing the difficult decision of letting employees go.
What Not to Do When Facing The Challenge of Employee Termination
While there is no ideal way to handle layoffs, certain approaches, particularly from top company leaders, stand out as damaging to affected employees and tarnishing the company’s reputation.
For instance, while delivering the news of layoffs to Pitchfork staff, Condé Nast Chief Content Officer Anna Wintour chose to keep on her “signature” sunglasses. This act of detachment and seeming indifference left a lasting negative impression on the affected employees, with Allison Hussey, a former Pitchfork writer, saying “The indecency we’ve seen from upper management this week is appalling.”
Meanwhile, eBay's CEO Jamie Iannone instructed staff to work from home only to lay off 1,000 employees—9% of eBay’s workforce—over a Zoom call. Opting for the impersonal medium, while also failing to resign and double down on his strategy resulting in mass layoffs was not a good look. And in October 2023, during layoffs at The Washington Post, a layoff email urged departing employees to "take a last look at the Post store" to take advantage of employee pricing while they still could.
In all of these instances, the trivialization of the significant life changes employees were undergoing highlighted a lack of understanding and empathy from the leadership. Failing to acknowledge their own mistakes and utilizing impersonal communication channels can contribute to an environment of distrust and discontent.
Best Practices for Effective, Compassionate Layoffs
CEOs, as the leaders of an organization, set the tone for accountability within the company. Their actions and behaviors influence the organizational culture, meaning they need personal accountability, first and foremost, before it's expected from everyone else. Building trust and credibility, creating a culture of communication, clarifying expectations, and fostering a supportive environment are crucial aspects of leadership accountability throughout the entire employment experience, but especially during layoffs.
To navigate layoffs effectively, while maintaining organizational integrity, trust, and performance, leaders should adhere to the “three be rule,” which emphasizes key tactics within a layoff conversation that are also emblematic of accountable behavior. According to the rule, leaders should be honest about the reasons for the layoff; they should be compassionate and understanding toward affected employees, this is a huge change, after all; and finally, be quick and conduct the process swiftly without dwelling on more than is necessary. These steps, while undoubtedly still uncomfortable and difficult, maintain the qualities of accountable leadership described above.
Conclusion
Accountability in business leadership is not a luxury but a necessity, especially during challenging times like layoffs. CEOs and managers must uphold the highest standards of accountability to set a positive example for the entire organization. By doing so, they build trust, foster a culture of accountability, and ensure that even in the face of difficult decisions, the company can navigate challenges effectively while maintaining a positive and productive work environment.
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