1. Layoffs & Organizational Decline
Layoffs in a variety of organizations
High technology
Financial services
Consumer goods
Entertainment

2. Lessons Learned From Atari
What do you think?

3. Hewlett-Packard Drop in orders HP’s response
Need to cut pay by 10% and cut back production by 10%
HP’s response
Cut pay by 10%
Everyone from the president to the lowest paid employee
Stay home every other Friday
Why not just lay off 10% of the workforce?

4. The Layoff Choice Layoff first, ask questions later
6% tried cutting pay
9% tried shortened work weeks
9% tried unpaid vacations
14% tried sharing

5. Other Alternatives to Layoffs
Unpaid leaves of absence
Few takers
Hiring freezes
Within firm transfers
Move employees from declining unit to a healthy unit

6. Conducting a “Kind” Layoff
Treat people with the same respect and maturity when you fired them as you did when you hired them
Severance pay
Job search assistance
Use of company and voice mail
Use of company computers
What about theft and/or property concerns?
Most people have saved key listings, other information on their home computers
Fair treatment reduces potential for violence

7. Organizational Extinction / Plant Closings
Closing ceremonies
Need for psychological closure and understanding
Managers feel extreme sense of guilt
Explain the best they can
Offer job search help
Social concerns
Phone number exchanges, promises to get together
Set date for reunion