Handling layoffs
Finalizing the list
- Have a core team that reviews the list of people affected
- Ensure the team keeps this secret–no one is to share with anyone else (not even informally) unless the entire core team agrees up front
- Ensure the list of people affected is driven by business rationale, not performance
- Double check if anyone on the list may need special care/support because of a personal situation
Setting up the cadence
- Do not set up any of the following meetings until a few hours before they take place
- People affected get the message in individual meetings, from their manager
- Plan for a short time span (a few hours one morning is best) where all announcements are made simultaneously
- Plan for an “all clear” meeting with all survivors, right after the last person affected has been notified
Message for people affected
- Don’t beat around the bush, focus on a clear message “your employment contract is ending today”
- Be ready to answer some “why” questions with business rationale, reassure it is not their performance, empathize with feelings
- Move to practical steps as soon as you can: when is last day, what will happen with company accounts/assets, etc
- Let them know what severance you offer - subject to signing severance agreement
- Send them severance agreement that contains key non-disparagement and non-disclosure clauses
- Pay severance subject to them signing the agreement
- Typically, leave company email/Slack open for a few days after the announcement so that people can say goodbye
“All clear” message for survivors
- Acknowledge that a painful decision had to be taken
- Provide some business rationale but keep it at the headlines
- Acknowledge who has been affected and that their last day was today
- Confirm that layoffs are over and that everyone in this meeting still has their job
- Pre-announce that you will talk about new plans in the next meeting (but don’t force it into the same meeting)
Ongoing motivation rhythm
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Do another all-hands ~1 week after the layoff, announcing new goals and exciting progress
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Start sending out weekly video messages highlighting your take on progress
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Increase level of enthusiasm gradually as the mourning process gets left behind