Buckle up. The mass layoffs we thought we left behind in 2023 aren’t over yet—especially if you work in tech. Companies like Apple, Sony, Rivian, and Google made headlines as they continue to reduce employee headcount in 2024, causing disruption within their workforce.

Rivian sent employees an email saying cuts would be disclosed the next day, while Apple is giving members of its autonomous electric car team 90 days to find a reassignment before being let go. In this volatile marketplace, 85% of Americans are worried they’ll lose their jobs, according to a survey from MyPerfect Resume.

That begs the question: Is transparency about future layoffs ever a good idea for an employer?

Andrew Shatté, Ph.D., chief knowledge officer and cofounder of the employee resilience solution meQuilibrium, cautions against thinking there’s something Machiavellian about the general announcements that companies sometimes make forecasting layoffs before notifying affected employees. While they can be anxiety-inducing for individuals, he says that there are business reasons why companies make preemptive announcements.

“Publicly traded companies may be trying to protect their stock,” he says. “If they had a bad year or quarter, they want to let stockholders know that they’re going to take measures. They want to get that message out very quickly.”

The move could help employees better prepare, says Carly Holm, CEO at Humani HR, an HR consulting service provider. “It gives employees who know that they’re not performing well an opportunity to look for a job,” she says. “It’s always better to look for a job when you’re still employed.”

Tom Gimbel, founder and CEO of LaSalle Network, a national staffing, recruiting, and culture firm, likens it to wanting to break up with someone. “You hope that they do the hard work and leave you first,” he says. “These announcements tell the rank and file, ‘Get out ahead of this thing while the market is good.’ Then if you do layoffs, you save the company severance packages and morale issues of having to let more people go.”

Transparency can also help an employer brand in the long run, says Gimbel, if they announce far enough in advance. “We’re not announcing this at the 11th hour when people aren’t ready for it,” he says. “We’ve given people enough warning, go out and look for a job and don’t be caught with your guard down. That’s the positive play.”

‍

Read full article here