‘Cut once and cut deep’: This CEO shares 7 best practices to managing layoffs effectively

Published Updated 2 Min Read

PexelsTesla will lay off 3.5% of its total workforce.

Between record-breaking inflation rates, supply chain disruptions and the Fed hiking interest rates up, many are concerned that the U.S. economy is headed toward a recession — and that its arrival will bring along a wave of layoffs.

The U.S. has more than a 50% chance of a recession within the next 18 months, according to financial services company TD Securities, and companies like Netflix, Robinhood, Glossier and Lyft have already laid off workers this year. Tesla is laying off 229 data annotation employees, and shutting down their San Mateo, California office. 

Every employee impacted should have an individual meeting with their manager and HR representative. Three to four days after the layoffs, the CEO should then lead an all-hands event in which they share the company’s trajectory and why they still believe in its future success, explains Church. 

Read more: How job candidates can spot employer red flags before accepting an offer

Deanna Cuadra
Senior Reporter

Deanna Cuadra is a senior reporter at Employee Benefit News. Her work covers healthcare, U.S. policy and reform, challenges faced by women and parents in the workplace and innovation in work culture … Read full bio


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