First-Minute Layoff News
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A breakdown of how to properly deliver layoff news based on a CEO's poor handling of mass layoffs at Better.com.
The Core Rule of Layoff Communication
- Must communicate the layoff decision within first minute of meeting
- Need to "rip the band-aid off" immediately
- One of first three statements should be "we're letting you go today"
What Not To Do
- Avoid long-winded buildups
- Creates confusion among employees
- Generates anger and frustration
- Comes across as self-serving
- Don't focus on personal feelings
- Employees don't care about manager's emotional state
- Talking about yourself is inappropriate
- Avoid discussing how "hard" it is for you
Common Mistakes Demonstrated
- Delayed delivering core message
- Rambled about market conditions
- Made vague statements about "not great news"
- Created unnecessary anxiety and tension
- Mixed messaging
- Blamed market conditions
- Then referenced performance issues
- Created confusion about real reasons
- Poor delivery method
- Used mass Zoom call for 900+ employees
- Provided minimal personal context
- Directed follow-up to generic HR email
Impact of Poor Delivery
- Creates immediate hostility
- Damages company reputation
- Demoralizes remaining employees
- Makes transition more difficult for laid-off workers
- Appears unprofessional and unprepared
The key takeaway is that direct, immediate communication of layoff decisions is crucial for maintaining professionalism and showing respect to affected employees.
01:34 - 01:50
Full video: 10:38SP
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.