How to Lay Off People Properly Amidst the Unrelenting Downsizings

Even though we believe that layoffs should be used as a last resort, and have the published research to support it, there do come times when it’s necessary to lay off employees.  That’s why it was good to see Simon Constable in the Wall Street Journal recently recommend several ways in which to do it properly that fit with our findings and recommendations we made a decade ago in the MIT Sloan Management Review.  This includes our counterintuitive but important recommendation not to fire people on a Friday:

Don’t fire people on a Friday.

Don’t fire people late in the day.

Don’t make any layoff announcement until everyone affected has been informed.

Do offer to provide a good reference.

Fire people before Thanksgiving or after New Years, but not between.

Don’t piece-meal your chopping.

Don’t fire anyone by email.

We have an article in this spring’s issue of MIT Sloan Management Review that reflects upon and updates our article we published a decade ago:  “How do Downsize Your Company without Downsizing Morale.”  For  additional ideas and case studies on how to downsize or lay off people properly, be sure to read our book, Trust is Everything.

If you’d like a copy of our previous MIT Sloan Management Review article, Preserving Employee Morale During Downsizing, please contact us.

Aneil

Below is a listing of downsizings that I have been keeping track of over the past several months, using data published by the Wall Street Journal and New York Times.  The list does not include the 2,000 job cuts that GM announced today as well.  It is by no means an exhaustive list, but it gives an idea of the horrific toll that downsizing is having in the U.S. and abroad:

Company Downsizing Percent Date
Citigroup 50,000 14% 11/17/08
Bank of America(Merrill Lynch) 35,000 11% 12/11/08
Caterpillar 20,000 18 1/27/09
AT&T 12,000 4% 12/4/08
DHL (U.S. staff) 9,500 73% 11/10/08
Dell 8,900 10% 10/22/08
Circuit City 8,000 20% 11/10/08
Sony (electronics division) 8,000 5% 12/9/08
Sprint Nextel 8,000 N/A 1/27/09
Merck 7,200 12% 10/22/08
Home Depot 7,000 N/A 1/27/09
NG Groep NV 7,000 N/A 1/27/09
DuPont 6,500 4% 12/4/08
UBS 6,100 26% 10/3/08
Sun Microsystems 6,000 18% 11/14/08
Credit Suisse 5,300 10% 12/4/08
Chrysler 5,000 25% 10/24/08
Dow Chemical 5,000 11% 12/8/08
J.P. Morgan Chase (Washington Mutual) 4,000 21% 12/1/08
National City 4,000 14% 10/21/08
U.S. Steel 3,500 13% 12/2/08
Texas Instruments 3,400 12 1/27/09
Goldman Sachs 3,260 10% 10/23/08
Fidelity Investments 3,000 7% 11/14/08
Motorola 3,000 4.50% 10/30/08
Xerox 3,000 5% 10/23/08
Micron Technology 2,850 15% 10/9/08
Textron 2,200 5.20% 12/23/08
Applied Materials 1,800 12% 11/12/08
State Street 1,800 6% 12/3/08
Yahoo 1,500 10% 10/21/08
Nortel Networks 1,300 5% 11/10/08
Unisys 1,300 4.30% 12/22/08
eBay 1,000 10% 10/6/08
Mattel 1,000 3% 11/6/08
Viacom 850 7% 12/4/08
Adobe Systems 600 8% 12/3/08
Carlyle Group 100 10% 12/3/08