The Ethics of Worker Layoffs

The headlines are heavy with news of high-flying tech unicorns announcing layoffs , crypto companies like Coinbase rescinding job offers , and CEOs using forced attritions to minimize severance payouts . These events triggered the memory of my conversation with Rajdeep Gupta, the Front Office head at a Taj Hotel during my recent visit to India. For those who are not as familiar with this hotel chain, it's part of Indian Hotels Company Limited (IHCL) and the iconic Tata Group , India's largest multinational conglomerate. IHCL was incorporated in 1902 and launched their very first luxury hotel in India a year later. This was my sixth hotel stay since my arrival in the country and one morning, after few weeks I was invited to share my feedback as a first-time guest at this hotel.

During our wide-ranging chat that covered work, family, and covid-19, I asked about his history with the Taj Group. I learned that he started in his current role shortly before the Indian travel and hospitality industry was devastated by the pandemic. He described the nerve-wracking anxiety and stress as death toll continued to rise in the world's most populous democracy. Like many others in the hotel industry, Rajdeep had moved from another state with his young family for his new job. He was increasingly fearful for his young children's safety and wondered if he would have a job as other hotels around them started shutting down.

Taj hotel's response to this horrific crisis is a case study on how companies can opt for a more humanitarian and compassionate model of corporate ethics even during unprecedented times. Unlike its competitors in the hospitality industry, the hotel did not lay off any of the staff members and continued to pay them during the multi-year pandemic even when the property was closed for guests. Today, the hotel is buzzing with renewed energy although the threat of another pandemic surge is looming on the horizon.

In America (and around the world), billionaires doubled their wealth during the pandemic while the average worker barely survived the constant attempts to put them in harms way. We glorify "work ethic" but rarely mention reciprocity or responsibility of corporations towards their workers during times of crisis. The ultra-rich CEOs are hailed as "job creators" even when their reflexive response during a downturn is to get rid of the workers who made their immense wealth possible. We've been groomed to accept the hire-and-fire culture even when presented with evidence that layoffs are neither inevitable nor necessary. Culling the workforce during a downturn is a deliberate choice by those committed to the obscene wealth inequality as result of a culture that significantly overestimates the value of a CEO while undervaluing contributions of the average worker.

So as we brace ourselves for another impending economic crisis, let's remember that workers are not disposable objects to be sacrificed at the altar of billionaire egos or discarded to satiate VC/corporate greed during bad times. A more equitable and ethical world where everyone thrives is possible but only if we stop treating workers as expendable and demand more from those benefiting the most from their hard labor.

---

Join us for Women in AI Ethics Mid-Year Summit on June 8th where we will discuss tech philanthropy and pathways to building a more equitable and ethical AI tech future.

#ethics #growth #india #corporateculture #futureofwork #leadership #corporateethics #work #culture #management #job #layoffs #hospitality #hotels #travelindustry #hospitalityindustry #travel #ahmedabad #gujarat #tech #workethics