First-Minute Layoff News

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: 10:38
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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.

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