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RIFs have Started: Yahoo is First
Oct 22Well, this is going to get all too familiar over the coming year. Yesterday, Yahoo led the way to RIFville with an announcement that they would be laying off 10% of their staff before year’s end. Sure, all the trouble isn’t from the recent stock market collapse, but that’s a big factor.
Jerry Yang’s letter to what he calls “yahoos” can be found here. He did an honest and credible job to tell the whole story. And he showed that the business cares about people…and about business. Here’s a snippet from Yang’s letter to employees, which was titled “update”:
affected employees will be notified of layoffs in the next several weeks. we understand that hearing this news now creates uncertainty, but we are moving ahead in a way that balances speed with a clear focus on accomplishing what is necessary to set the organization up for long term success. going forward it will continue to be important for us to make the right decisions to keep our business efficient and strong.
having layoffs is very difficult, particularly in light of all we’ve experienced this year. but we don’t take these decisions lightly, and are committed to treating affected employees fairly, offering severance and outplacement services.
the steps we are taking are not easy for us as a company, but as we become more fit as an organization, decision-making will be faster and it will be easier for us all to get more done and stay focused on our strategy. these changes will also prepare us to better deal with the macroeconomic downturn. as with previous downturns, yahoo! continues to be a place where consumers turn for information and communications, and is an integral part of their internet day. as the global economy improves in the future, i certainly believe that we will be stronger and benefit from the actions we are taking now.
About the Author
Frank Roche
Frank started IFRACTAL over 7 years ago with Sarah Chambers. Together, they've created HR communications and HR software for some of the world's leading companies. Frank is also studying Flamenco guitar and origami.
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I'm afraid that you are right, Frank – the snowball has just started down the hill. I've helped write a lot of those letters in the past and no matter how well I crafted them, the results were still the same – most employees' anxiety levels skyrocketed and productivity sufferred. Not much good comes from a RIF except immediate relief to the bottom line. Being a class act, HP would institute an accross-the-board salary cut to avoid layoffs.
Interesting remarks Ron. I like your comment that “across-the-board salary cuts” should be taken, when possible, to avoid layoffs. I would agree with you that neither parties (employers or employees) benefit from RIFs. Not only do RIFs increase anxiety levels of those being let go, it increases the risk of those “safe” jumping ship as well.
Ron, it's just no fun. Managing the survivors is important, but often forgotten.