2023年度展望

The shock of mass lay-offs is only the beginning for companies

CEOs fire workers swiftly and brutally, but such actions have destructive long-term effects for companies and staff

“After almost 8.5 years working at Google, I received notice this morning that I was impacted by the workforce reduction and no longer have a role at the company . . . I envisioned spending my entire working career at Google, so this news has been particularly hard to absorb.”LinkedIn is awash in posts like this from Google workers who suddenly lost their jobs this month via email. Some had devoted decades of their life to the company. Google’s parent, Alphabet, is among the tech giants slashing their workforce by thousands. The sector overall has shed about 200,000 jobs in the past year.

One fired Google employee told the Financial Times: “The company motto is ‘respect the user, respect the opportunity and respect each other’. Who are they trying to kid?” Distressing as it is to sack entire teams — and however counter it is to companies’ public image and management style — there are good reasons why mass lay-offs have to be swift. The abruptness of the firings might be attributed to an effort to protect intellectual property and client relationships, prevent staff from transferring data and other security reasons.

After the initial shock has passed, however, are employers aware of the long-term consequences of their actions? Sandra Sucher, co-author of The Power of Trust: How Companies Build It, Lose It, Regain It, points out that research shows lay-offs have a detrimental effect on employees and corporate performance. “The reason why mass lay-offs don’t end up paying off is that they destroy trust within an organisation,” she says.

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