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A Lesson About Layoffs From Microsoft


Businesses should be careful about incurring bad publicity

Getting rid of an employee (or more than one) can be a tricky thing, regardless of whether it's a layoff or a performance- or attitude-related firing.  And a recent development involving Microsoft and Google proved this point, highlighting why businesses should proceed with caution.

Last week, Chris Crum noted that former employees may represent security risks.  Don Dodge, who was laid off from Microsoft, did more to damage his former employer's reputation after Google offered him a job.  Dodge wrote an 850-word blog post putting several of Google's products (and its corporate attitude) far above Microsoft's alternatives.

Microsoft LogoDodge worked for Microsoft for almost five years, so his words carry a lot of weight.  Since he's made a whole lot of friends in the tech world, his words are receiving a lot of attention, too.

Here's what may be the key point, then: make sure employees know why they're getting cut.  Dodge wrote, "[L]aying off 5,000 people when you have $37B in cash and huge profits is not cool," signaling that this apparently wasn't made clear to him.  And resentment ensued.

Of course, it can be debated whether or not Microsoft had a good reason for making layoffs, and any time you separate a person from his or her income, warm fuzzies aren't likely to result.  This incident just goes to show that a little heart-to-heart with departing employees might save you a lot of bad publicity.

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News Tags: Marketing, employees, Layoffs
About the author:
Doug Caverly is a staff writer for SmallBusinessNewz.

Comments

Assumption may not be correct

Doug,

I think you might be assuming too much.  Microsoft can change the facts.  Just talking more to an employee does not necessarily mean they will agree.  From the employee point of view, why is it necessary to lay off 5K employees, with 37B in the bank Chris might never believe MS was justified, no matter how much they talked to him.  Corporations have obligations to shareholders not just employees, and just having money in the back does not mean they are relieved from their profit objectives. 

Just like in the real world, Obama can barely convience a majority about his health reform, never mind everyone, no matter how much talking he does.

Although, I must admit, trying is better then the alternative of doing nothing.

 

Unfortunately some

Unfortunately some employers, my former employer have not helped themselves or the larger community of employers.

It is very true that when dispensing with someones services that the person in question needs to know why the employer is needing to do this, however too many employers (my former one included) here in the UK have used the recession as an excuse to slim down the workforce prior to hiring unskilled labour from eastern europe.

The basic rule is simple, if an employer can't be bothered to explain to someone why they have just lost their income or simply chooses to use an excuse of convience, The employer shouldn't be suprised when said former employee goes out there in the world and tells people what they think of their former employer and their attitude.

Layoffs from Microsoft

Isn’t it great to be able to cut emp. and see your stock go up.Market likes layoffs but doesn’t like unemployment . What a way to see things.If you figure it out let me know.

Layoffs

Unfortunately many companies here in the USA have an "at-will" policy, meaning the employer can let an employee go for any reason and no explanation is required. The same goes for the employee - (s)he may leave for any reason at any time without explanation. I personally do not know if that is the case with Microsoft, but for a company of its size and stature they probably have their own spin on a variety of policies. While it is a good personal and professional practice to share the details in letting an employee go, it is a delicate topic and some details aren't always shared. A company laying off people while having "x" amount of dollars in the bank and making huge profits may also have "x" amount of impending debt.

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