Is there ever a ‘good way’ to tell people they no longer have a job? Well, Twitter and Stripe have recently had to grapple with this challenge, with other companies, such as Meta, following swiftly behind.
How leaders respond and communicate in difficult times is key to the health and wellbeing of both their people, and their business. Many companies have often already publicly declared how they want to talk to people, through proudly displayed value statements on their websites.
Blowing your own trumpet on what matters to your business is great, but it must be real. Have a little read of how important Twitter thinks healthy conversation is. In summary … ‘should be able to speak your mind’ … ‘find credible information easily’ …’want you to be part of the conversation’ … ‘you should feel safe.’ Then consider the chaotic communication around the severance of potentially 7,500 Twitter staff over the past few weeks. This story has been delivered to the public domain through knee-jerk tweets from company leaders, complemented by tales of exceptionally poor treatment shared by disgruntled (and who can blame them) former employees.
Twitter slashed nearly half of its workforce without any warning or formal process
In stark contrast, financial infrastructure internet startup Stripe, issued a bold press statement, publicly explaining how and why they would be laying off 14% of their workforce. In a message that was slick beyond belief, the leadership team explained clearly what they were doing, and took full responsibility for mistakes that had been made. Their brand values? Well, they include: ‘move with urgency and focus’, ‘think rigorously’ and ‘optimism’. Their statement about staff lay-offs, is a perfect ode to their brand values. This is a crucial lesson for all leaders.
Create strong values, that you can really live by. Make them the foundation for your business and you will have a unshakeable confidence that will help to guide you through the tough times. This nugget, is the first of our essential lessons for leaders on laying people off with decency and integrity …
Stripe cut 14% of its staff and released one of the best statements I’ve ever seen
Always follow your internal procedures and comply with employment law
Above all, leaders must take note of the clear legislation and guidance from ACAS to guide employers who are considering making redundancies. If you’re not sure which process and procedure to follow, or which legislation applies to your changes, talk to your HR Business Partner or give us a call.
Ending people’s employment is one the hardest things you must do as a leader. We have lots of experience in supporting organisations to make difficult decisions with compassion and confidence. If you could benefit from the advice of an experienced specialist, then please, get in touch.
Twitter & Stripe: Do They Practise What They Preach?
Live your values – more so during challenging times
Lay-off and redundancy procedures should, as a minimum, be legally compliant
Word will get out – manage the message
Remember the people left behind – support them
Put a recovery plan in place
Final thought
I need HR support to restructure my team