Peter MerholzJan 6, 2023
“Layoffs are a social contagion.” This quote is gold. From: https://news.stanford.edu/2022/12/05/explains-recent-tech-layoffs-worried/
What explains recent tech layoffs, and why should we be worried? | Stanford News

As layoffs in the tech sector mount, Stanford Graduate School of Business Professor Jeffrey Pfeffer is worried. Research – by him, and others – has shown that the stress layoffs create takes a devastating toll on behavioral and physical health and increases mortality and morbidity substantially. Layoffs literally kill people, he said.

Stanford News
Show threadJohn Carlsen 🇺🇸🇳🇱🇪🇺

@peterme thanks for sharing the good article!

I found this gem near the end:

"One thing that Lincoln Electric, which is a famous manufacturer of arc welding equipment, did well is instead of laying off 10% of their workforce, they had everybody take a 10% wage cut except for senior management, which took a larger cut. So instead of giving 100% of the pain to 10% of the people, they give 100% of the people 10% of the pain."

I also like the implication that senior management is taking more of the "pain". Not only are they the ones who can probably best afford to take the hit, but they are ultimately those most responsible for the company's situation, so they should take it.

That's how a responsible business should be run.

Apr 25, 2023 at 3:08pmWeb
Show threadJohn Carlsen 🇺🇸🇳🇱🇪🇺Apr 25, 2023

@peterme

By the way, until shortly before I started working there in 1988, IBM had a "no layoffs" policy.

If/when IBM needed to tighten its belt, it had done so through normal attrition.

I learned this from my boss, who was a 25+ year employee there an also a *great* mentor.