On Tuesday April 29th, National Semiconductor eliminated 130 positions as part of a strategic re-org. Read More here…
Although most layoffed employees were granted moderate to generous severance packages, the news came as a shock to many, and the way the company handled the situation made me realize how a few subtle touches can make a huge difference in the emotional moral of the employees. When eBay eliminated 175 jobs on April 1st, employees were given two weeks notice and asked to work out an exit plan with their managers, ensuring they had enough time to look for some positions internally, exchange contacts with colleagues, and transform the remaining work to the appropriate employees.
At National, however, many employees were simply told the news in early afternoon and expected to hand in their computers and cell phones and walk out right away.
Not sure which method is best for most people, but I think given the choice, I would much prefer the eBay method, while I also know of many people who prefer the National way, being at once done with the whole thing. What is your take on it?
2 responses so far ↓
Ron Hariri // May 3, 2008 at 7:35 pm
I’ve worked years in software industry. I would think software is more ’soft’ in how they treat peapole than hardware companies. But my theory was disproven when years ago I saw Manugistics, a software company with offices in Penninsula, did it similarly to how you wrote about National Semi, meaning no notice, say hour walk people out the door. I think how a company treats people in all situations, including a layoff, can be good indicator of culture of the company.
Parham // November 5, 2008 at 12:56 am
Layla,
Unfortunately we have to get used to “Disposable Employment Opportunity” here in the valley!
Tech industry used to be a lucrative sector in 90s but became mainstream in the new millennium. I am sure people can relate to defense and aerospace industries where they hire and fire people on-demand in a linear way.
As for layoff method used by National, it is absolutely not a humane way to treat your employees the way they did, however, it has been proven over and over that “some” departing employees do act irrationally in those last hours (or days) and commit undesirable acts such as file deletion, IP copying, and so forth. Shining stars become disgruntled employees in no time.
I have personally witnessed that many times!
_parham