We care about our employees!

In the tech sector in late 2022 we watched as the big players - Microsoft, Alphabet, Salesforce, Spotify, and others - conducted massive layoffs, reaching almost 80,000 layoffs in Q4 alone[link]. Companies do this to increase their stock price. They may claim it is for other reasons, but there is always a bump in stock price after layoffs. This works out well for the C-Levels as their bonuses and pay tend to be tied to stock performance. 

Simon Sinek, in his book "The Infinite Game" points out how short sighted this process of increasing the value of a company in the short term is: 

And though they may crush it in the near term, the manner in which they achieve their results will often contribute to a toxic environment in which others will struggle to thrive.

Simon Sinek - The Infinite Game (Kindle Version) Pg 110

I have seen the aftermath of these mass layoffs from both sides, being laid off and being one of the employees left behind. Being laid off is a miserable experience because it often happens when you are doing well at your job. You are not let go because you aren't good at your job, often it is the exact opposite. The company decides to go in a different direction, and you are no longer needed. They change the game without telling you and set you adrift. 

For those left behind, there is a decline in morale that is palpable. Survivor's guilt and remorse sets in at about the same time that the company holds a meeting to let everyone know that we all need to "pull just a little harder" to keep production where it was, essentially telling everyone that management got a bigger bonus by throwing their teams under the bus. Is it any wonder that productivity declines following such an event?

What is even worse is when these layoffs happen right after the company has posted large gains, or dramatically increased in value. Employees hear these reports and know that management is going to make cuts so that there are fewer slices of that bonus pie. 

Is it any wonder, then, that employees couldn't care any less about the company they are working for? Why should they care if the company does well or not? In the end, they will be pushed aside so management can get a bigger bonus. Don't blame Gen-Z or millennials for not wanting to work in such a toxic environment. 

I can't recommend Simon's book enough; it presents a better way to run a company for long-term success. Use the link above, I don't get anything for the referral. We need to be better if things are ever going to get better. 

Just my 2 cents.

Image by Gerd Altmann from Pixabay