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Minimizing the Impact of Layoffs on Your Corporate Culture

By Paula Santonocito

The management pressure associated with layoffs can be significant, but the fallout can be even worse. If not handled properly, layoffs have the potential to negatively impact productivity and morale, alter the bonds of trust between employees and management, affect corporate culture, and tarnish your employer brand.

Two Case Studies

The Hayes Group International, an organizational consulting firm, shares the story of a manufacturing firm that had to make layoffs and changes. The company’s CEO sent a FedEx envelope to the plant manager with instructions that he should not open the envelope until the next day, when he was to call employees into the break room and share its contents. The envelope contained layoff notices.

Then there’s another company with which The Hayes Group worked. The company realized it had to make cuts at one of its manufacturing plants. In order to convey the message, it divided the 600 employees at the location into groups of 50 and the C...

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