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The art of Laying off People - Kawasaki style
Posted by Faisal Naik | Posted in Change management, HR | Posted on 11-12-2008
********* The intent of the post is to share management actions in times of crunch with no intention of creating a furor amongst the industry professionals **************
Seeing a blog post with a such a subject might scare away people like me from even clicking on it. But to think of such an activity being carried out in an organization is painful job indeed. The parties on either side of the table have a notion to justify and support. Nonetheless it is the employer who has the final say whatever be the argument or counter argument.
Considering the global financial crunch, down sizing, lay-offs, cost cutting are some of the jargon we tend to listen around us. With clouds of down-sizing looming above in local market here is what Kawasaki thinks about it:
Kawasaki (Venture capitalist and democratizer of information How to Change the World) has the following viewpoint on laying off people. Some aspects are interesting others not so amusing.
a) Take Responsibility — CEO has the final say in such matters, so needless to blame it on the board of directors, market conditions and competition. CEO being the leader shall accept the responsibility with courage.
I tend to differ slightly here. If the market conditions are stable then why go for a down sizing activity. The org can live with a non-increase in head count if the market / competition allows it. Again what ever the decision the CEO as a leader has to take the lead and put it as softly as possible.
b) Cut Deep and cut once
If it is inevitable then Yes, one big blow to do away with the excess chunk. Multiple cuts tend to effect the employee morale more with reducing motivation levels.
c) Move Fast
When ever the decision is made act on it quickly and swiftly rather than making it a gossip point.
d) Share the pain– When people around you are losing their jobs, you can share the pain, too. Cut your pay. In fact, the higher the employee, the bigger the percentage of pay reduction. Take a smaller office. Turn in the company car.
Probably this one relates more to the top management rather than the co-worker. Share the pain just as you share comforts in good times.
e) Dont ask for pity — The person who suffers is the one being terminated, not the manager.
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f) Provide Support
Yes the post lay off support, like counseling, resume writing and job search help.


Faisal Naik has been associated with IT & Telecom industry since 1999. With a Masters degree (MS) in Computer Science, and in Business Administration from SZABIST Karachi, he has had the privilege to work for data network operators, financial institution and telecom companies.