How to lay and get laid (off) right

It feels like with each passing day, there’s a new headline about companies making layoffs. Most recently, it was reported that Amazon was planning to lay off 10,000 workers.

So far in 2023, 789 tech companies (yes, just tech!) laid off a total of 121,413 employees.

That’s a lot of people losing their security, income, career momentum, and, for many, a sense of purpose. As someone who’s been in the unpopular position of administering layoffs, here’s my advice for those on both ends of the experience.

My top 5 pieces of advice for those doing the layoffs:?

1. If you’re going to do it, do it sooner rather than later. The sooner you make cuts, the more cash you’ll have to give people the severance they deserve… and to stay in business. Make sure to tether severance to a separation agreement that serves as a mutual acknowledgment that it’s over, and on what terms (we include one of these in Business Class!).
2. Treat people like humans, not “human resources”. Lead with gratitude and be warm – you want to be remembered as someone who cared.
3. Cut to the chase. Don’t tell a huge backstory about what’s going on. Don’t use nonspecific language. Explain what’s happening, how it affects them, what they need to know, and let them get out of there to process.
4. It’s not about you. Nobody cares about how hard it was for you to make these decisions. Try not to cry – the last thing someone losing their job should have to deal with are your emotions.
5. Set them up for success: add your team to a layoff list like Layoffs.fyi , reach out to other companies who are actively hiring, and let them know that you’ll serve as a reference for any future employers.?

My top five pieces of advice for those getting laid off:?

1. It’s not personal. These layoffs are happening en masse, and no company is recession-proof. Reductions are about the company staying afloat, not about your performance.
2. Get a separation agreement. You’ll need this to file for unemployment, because it will document the reason for your termination.?
3. Review the severance package. Depending on your length of employment, most companies should offer at least a couple weeks, and more for more senior staff and tenured employees. Make sure you’re paid out for any unused PTO, and ask about the continuation of your health coverage.
4. Apply for unemployment immediately. Each state is different, and if you’re in the US you can use this as a resource.
5. Go out with grace. Share gratitude for the opportunity you had to work at the company and with your manager, and ask them if you can stay in touch and use them as a reference. Chances are, they’ll be laid off or quit and want to rehire you for what could be an even better opportunity!
6. It’s a gift. I can’t count the number of times I’ve met people who say their lives improved after getting laid off. Being laid off can push you out of the proverbial nest in a way you may not have had the courage to do yourself. So many employees I have laid off, even (especially) the grumpiest ones, have gone on to freelance and start their own businesses.?

— Sophia

This week I’m paying attention to:?

Sustainable home cleaning and bodycare essentials brand Blueland has kicked off a petition to the EPA to keep plastic laundry pods and sheets out of our water. I signed. Will you?

This week I’m listening to:

10cc’s Dreadlock Holiday . Apparently the band’s name is the metric total of semen ejaculated by the average male.?

This week on my pod, The Crazy Ones:?

We dive into what you need to know before raising capital, talk about the $11 billion company you’ve never heard of, then Jesse, Alex, and I answer a Startup AMA on how to find the most attractive benefits packages as a small business owner. Be sure to watch here and listen here .