What leaders can learn from Amazon's layoff email accident

• Key insight: Learn why poor communication can reshape employer-employee trust.    
• Expert quote: Schielke: Leaders must own mistakes, balance accountability with compassion.  
• Forward look: Expect employer communications protocols and retention strategies to be reevaluated.
• Source: Bullets generated by AI with editorial review

Amazon recently made headlines for prematurely sending employees an email on January 27 about its plan to lay off 16,000 workers. The company later confirmed this plan, but timing mishaps like this erode trust, and can have grave consequences on a company's culture, its public reputation and its ability to recruit and retain talent.     

The email, sent to the company's cloud division employees, referenced "organizational changes" and the difficulty of such decisions — and indicated that those impacted had already been notified, which they had not. Amazon confirmed its layoff intentions the following day, and sent follow-up communication to employees explaining the details, which include 90 days with full pay and benefits, a severance package offer and transitional benefits, and external job-placement support along with 12 months of complimentary access to AWS Skill Builder for those affected. The news follows the company's recent layoffs of 14,000 employees last October. 

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During high profile announcements, no leader wants to be doing internal damage control, let alone see their company in the news for the wrong reason. Leaders should learn a lesson from Amazon's recent snafu, and proactively create a plan for how to proceed if something does go wrong, says Jennifer Schielke, author and CEO of relationship-focused staffing and recruiting firm Summit Group Solutions.      

"This is a world where we are under a microscope… [and] we're all going to make mistakes," she says. "When a large hiccup happens, we have to be accountable and responsible, but we also have to have a bit of grace. It is a fine balance."  

How to minimize mistakes

Developing communication processes for sensitive information, such as limiting who has access, providing explicit instructions for disbursement, and potentially avoiding mass communication channels are good ways to start. 

But changes shouldn't just be administrative — it's important to infuse company values, such as honesty, integrity and compassion into communication practices, too, Schielke says. Even if people are getting bad news such as being laid off, they deserve to feel like they're valued, she explains.  

"If we take Amazon as an example and what just happened … the core wasn't [someone] made a mistake and sent an email, the core is, are we really going to do this over email? How does this show care? How are we preparing our staff for something like this?" Schielke says. "We can put processes in place, and we can have procedures; what's hitting people more is it feels a little icy, a little bit uncaring."  

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Take ownership when something happens

Leaders who admit when something has happened and move to rectify the situation will come out ahead of those who gloss over mistakes, Schielke says. She notes that this approach can make a dramatic difference in how news is received — especially for younger generations who believe this should be standard practice.

"Have [a] learning mindset and the mindset of serving the people who work for you," she says. "You're not going to get it right every time, but it's better to own it and apologize. That relational connection is the trust builder, and what gets us through those very difficult times." 

Schielke emphasizes that this leadership style should come from the top down, and those in this position should build a team around them that is well trained in the company's communication practices. Employees should be able to expect leaders' acknowledgement and authenticity in the wake of a mishap — something Schielke says has fallen off in business. 

"We have to do what we can to raise that bar and get [leaders] there, and find out how they feel valued and motivated, because we want them to care," she says. "First and foremost, the leader immediately acknowledges the situation. You don't have to specifically state everything, but you need to tell people or the world, whatever the circumstance is, that there has been an incident that has occurred, and I want you to know that it is my intention to ensure that for our employees, or whomever is impacted, that we want to make this right." 

At Amazon, Beth Galetti, SVP of people experience and technology at the company, sent a follow-up message to employees on Wednesday, January 28, which included mindfulness for employees among those being let go: "The reductions we are making today will impact approximately 16,000 roles across Amazon, and we're again working hard to support everyone whose role is impacted," she wrote.

Any communication should be followed up by continuous updates and whatever actions are best, Schielke says. Getting in front of the issue immediately portrays good intentions. Leaders should be curious, caring and engaged, updating people when appropriate and seeking feedback from those impacted. Above all, the human factor should remain at the forefront of their efforts, she says.  

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The power of connection and trust

When a pattern of trust exists within a company's culture, even the hardest challenges are easier to navigate, Schielke says.   

"There's security in that space and [in] how things are handled. You have to get to a point where the goal is, 'We're going to treat people well,'" she says. "We have to get back to the time where we can come to the table and learn how to constructively, productively communicate with each other."