💎 The ugly truth of layoffs

“GoMechanic Fires 70% Employees”

“Ola fired 200 employees across verticals”

“Amazon begins next round of layoffs, as tech giant cuts total of more than 18,000 jobs”

“Microsoft to cut 10,000 jobs”

This year, much like the last quarter of 2022, we have seen a flurry of announcements of companies laying off employees.

In this edition, I have shared different perspectives on layoffs – what is causing layoffs, how organizations are dealing with them, how they should deal with them, and how layoffs are impacting employees.

I came across this interesting article on the changing face of layoffs and workforce management. What caught my attention was the detailed insights into how organisations should approach layoffs. It also focuses on why organisations should keep trust at the centre of decision-making and how it can lead to surprising success, using the examples of Honeywell and Nokia.

Through this article, you can get an understanding of –

What is different about layoffs today What should companies consider before laying off employees How organisations can be more competent and humane about workforce change The long-term impact of layoffs on employees and the organisation

Read the full article here - https://hbr.org/2022/12/what-companies-still-get-wrong-about-layoffs

Key Takeaways :

1. Organisations should provide a soft landing for employees, such as voluntary buyouts with severance before layoffs and support for multiple paths to re-employment

2. Poorly handled layoffs can have long-term consequences for the company, including decreased productivity and difficulty in attracting and retaining talent

3. Layoffs have a long-term impact on people's health and finances. One study found that being laid off ranked seventh among the most stressful life experiences

4. The majority of firms that conduct layoffs do not see improved profitability, whether measured by return on assets, return on equity, or return on sales

5. Layoffs have direct costs, including severance and the continuation of health benefits which can lead to substantial restructuring charges that eat into hoped-for margin improvements  

Are you worried about the possibility of layoffs in your company? Do you know what to look for in a good layoff policy? This article answers these pertinent questions. I came across this article that dives into what a good layoff policy should include and helps you evaluate the relevant factors in case you are laid off.

Through this article, you can get an understanding of –

How to differentiate a good layoff policy from a bad one How to be prepared for a layoff and what you should expect What you should do if you are laid off

Read the full article here - https://www.cnbc.com/2022/12/30/heres-how-to-know-if-your-companys-layoff-policy-is-a-good-one.html

Key Takeaways :

1. What matters is putting employees first by treating them well and not just paying them well

2. Organisations must treat employees fairly while laying them off. A bad layoff policy also impacts the organisation's brand, and in today's market, employer brand is essential

3. Living wages, training and career advancement opportunities, worker safety, and diversity all factor into human capital metrics. However, that doesn't mean companies get a free pass on how they reduce headcount

4. If you haven't been in a layoff situation before, negotiating might not be something you automatically think about. You can always try to negotiate your severance pay because you won't know unless you try

5. Employees should be better prepared and aware of a company's layoff policy so that in case of a layoff, they are better equipped - re-entering the job market requires resources, and it helps when you're well-prepared  

Should you be worried about layoffs and the news of the recession? Not really. This article analyses the layoff scenario in the Indian ecosystem and gives some reassurance that the reality is not all that bleak.

Through this article, you will get an understanding of –

What caused layoffs in India in 2022 How employees paid the price of growth at all costs How layoffs impacted companies and employees in 2022 What will happen in 2023

Read the full article here - https://inc42.com/features/2022-when-layoffs-anxiety-job-insecurity-reached-peak-levels/amp/

Key Takeaways :

1. In 2022, India saw thousands of layoffs across industries such as edtech, e-commerce, and food delivery, which impacted employees' economic, social and living conditions and mental health. 4-6 out of 10 employees now seek professional help

2. Geopolitical tensions due to the Ukraine-Russia conflict, macroeconomic headwinds arising from interest rate hikes and fears of a looming recession forced investors to tighten their purse strings

3. This, in turn, put pressure on organisations and founders to take several cost-cutting measures like layoffs to improve profitability

4. But the situation in 2023 may improve. A positive hiring sentiment across e-commerce and allied startups, educational services, and the telecommunication sector will be seen in the next quarter, with more opportunities for entry-level employees and fresh graduates. Nearly 77% of employers are keen to increase their resource pool in the services sector. India is leading with the highest hiring intent globally

5. Professionals must differentiate themselves with in-demand skills, whether it is to secure new jobs or to grow in their current jobs  

Are you feeling the effects of a hiring freeze in your organisation? Are you wondering what you can do in such a situation? While hiring freezes differ from layoffs, the impact on employees and organisations is equally dire. This podcast episode delves into how a hiring freeze can actually be an opportunity for businesses in the Indian context.

By listening to this podcast episode, you will get an understanding of –

How to make the most of a hiring freeze What organisations can do to identify and fill skill gaps within the existing teams How organisations should improve their recruitment and retention processes What organisations can do to create a culture of learning and development.

Hear the full episode here - https://the-ken.com/podcasts/cost-to-company/the-hiring-freeze-is-an-opportunity/

Key Takeaways :

For employees –

1. Use the hiring freeze as an opportunity to upskill and improve your qualifications

2. Leverage the hiring freeze to network and build connections within the company

3. Take ownership of projects and drive them forward to propel your career

4. Communicate with your manager and express your career aspirations to ensure you are considered for future opportunities

For employers and top management –

1. A hiring freeze can be an opportunity to focus on developing the skills and capabilities of employees

2. Identifying and filling skill gaps within a team improves the efficiency and productivity of teams and the organisation

3. Building and improving the recruitment processes attracts the right talent when the freeze is lifted

4. Retaining and empowering existing employees is very important. It leads to increased engagement and productivity