Resources
cost reduction without REDUCING headcount
December 2022
One of our areas of expertise is helping clients reduce unnecessary costs without reducing headcount. In recent months, we are witnessing more and more layoffs, particularly in the tech space. How can you reduce spending and keep your personnel? Reach out and let us help.
Mass Layoffs by Tech Companies
December 2022
Thousands of layoffs are happening across the tech industry. Why?
According to Goldman Sachs Research, "higher interest rates and tighter financial conditions disproportionately impact the sector because tech company profits are typically expected further out in the future and therefore subject to greater duration risk.”
What does this mean for those affected?
For the employees that remain in the company, many of them are squeezed to produce more with the same amount of time and fewer resources. Confusion, burnout and fear arise in these situations.
For the employees that were affected by the layoffs, do not fret. Companies are still hiring and a good employer will not mind that you left your role due to layoffs.
What does this mean for companies and management?
Few things that companies and management tend to overlook are the day-to-day, on the ground operational challenges in such conditions and the impact layoffs have to company morale and culture. Management tends to forget the longer-term impacts such actions will have on the business and its employees. In recent times, a layoff is typically handled via email, a townhall with a short Q&A session and a few follow-up meetings.
How can companies and management mitigate post-layoff challenges?
The first step involves talking to your employees. Understand their concerns given this news and how their job duties will be impacted. Next steps include reviewing processes to find "wastes" (a lean concept) and optimize. The retained employees need to feel safe and valued.
For those unfortunately impacted by the layoffs, companies can set up an opt-in directory that creates a network to help this pool of talent find their next opportunity.