Goldman Sachs, Amazon Job Cuts: How Mass Layoffs Can Affect Your Brand Perception

The last couple of months have been filled with headlines of different brands and corporations announcing job cuts and layoffs, as companies started to cut jobs not just in the US but all over the globe. Unfortunately, these mass layoffs and job cuts have also resulted in negative perceptions for brands, even though companies have pointed to the changing economic climate as the reason for the decision. No matter the reason, companies have to be careful before announcing and cutting jobs, as the news can impact the opinions of employees, shareholders and consumers.

Operational Organization

Once a company has determined that it needs to downsize, it’s important to communicate with employees before the job cuts start happening. That means companies will have to get their human resources departments involved to create a communication plan regarding the layoffs and ensure that the company complies with all state and federal law requirements. The company will also need to ensure that everyone will be on the same page regarding the logistics of the layoffs, such as the last day of each employee, when they’ll be getting their paychecks, and gathering various resources that the employees might need aside from their benefits and severance packages. The company will have to figure out a way it will communicate the layoffs to the employees, which should always be done in private.

Communicating the News

The next step that the company will have to take is going to happen while communicating with the employees regarding the layoffs and job cuts. The employees will need to know the reason why the company made the decision and relay all of the information that the employees that are going to be let go might need such as the last day, benefits and severance packages, and when they’ll receive the last paycheck. Companies should also allow the employees an opportunity to ask questions or share their feelings as this is not an easy piece of news for anyone to take, and they all deserve to have the necessary information.

Support and Transparency

Once a company has communicated with the employees regarding job cuts and layoffs, it’s time to start working on recommendation letters for any employees that might need them to find new job positions, or be available as a referral. Companies will also have to be mindful of the employees that remain at the company and remain transparent regarding future layoffs, and how they can reach out if they have any concerns or questions.