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Resizing The Organization 9

Resizing The Organization 9. This book seeks to provide executives with useful insights, tools, guidelines, principles, and lessons learned about organizational transition and change. | Another Layoff A Dot-Com Reality 61 I had to be aware of the Worker Adjustment and Retaining Notification WARN Act to ensure that we were not violating any laws. The WARN Act states that a company cannot lay off more than fifty employees or 33 percent of employees per work site where there are more than one hundred employees without proper notification. Because we were terminating employees from three locations San Francisco Los Angeles and New York the WARN Act was not an issue. At this point our attorney okayed our reduction numbers. Because of the company s current revenue and the stock price less than one dollar per share at this time most employees understood their jobs were not very secure. There was a sense within the company that it was just a matter of time before another layoff would be announced. It was not a great working environment. During the previous month employees had visited my office to inquire about a layoff and voice concerns about their jobs. I made a point of sitting down with the employees to listen to their apprehensions and fears. I told them that there was no layoff planned at the moment but that every one of us was working in an uncertain environment and that we all should be saving money and carefully planning for the future. Employees know when a company is in trouble. How a layoff should be conducted always is up for debate. Do you tell people in advance What day of the week do you let them go What time during the day Who should do it How much time do you give them to pack up their belongings Do you need security in case someone gets violent overall there is no perfect way of implementing a layoff. The whole process is dismal. Laying people off is something that you never want to get good at doing. The most important thing to remember is that the decisions being made are affecting people and their families. I have found that many executives are afraid of the whole process of downsizing. Often they make the decisions to lay off staff