- Ethan Evans is a former Amazon vice president who invented products like Prime Video and Prime Gaming.
- Evans says he once went through a layoff at a startup, and then was laid off himself.
- He offers a four-part framework on how to successfully (and humanely) oversee terminations.
I once fired a third of a startup I helped launch. I was the Vice President of Operations and was responsible for various departments such as human resources and recruiting.
As a shrinking startup no longer needed to hire, I laid off as a last resort and was laid off in turn the next day.
During the previous year, I was focused on recruiting like crazy. The internet wisdom at the time was “get big fast,” so Goldman Sachs gave us tens of millions of dollars and told us to grow as fast as we could.
In one year, the number of employees went from 50 to 150. After four months and his two waves of layoffs, the employee count is back to his 50 people. We were following the advice of the “experts” and in the end, we fell off a cliff on that advice.
There have been a lot of layoffs recently, and good leaders need to be skilled at every part of the downsizing process for the sake of their team members and themselves.
There are several parts to getting this process right.
1. Plan
Depending on your level within the company, you may participate in downsizing plans and choose who stays and who leaves. If you feel like you're about to be fired, you'll want to be involved in the process so you can influence the outcome.
Being a part of these decisions is heartbreaking because you are making choices that impact your employees and their families. But it's even worse to realize that you're “just a messenger.” It conveys bad news and a sense of helplessness at the same time.
2. Communication
Everyone reacts very differently to layoffs. Once, there was an employee who felt that the award he received from the company was meaningless now that he had been fired, so he went back to his desk and broke the glass.
Other employees became so upset that they were unable to complete the meeting. We had to send them home to process the event and come back the next day to finish the conversation.
As a leader in these situations, it is important to remain calm so that you can adapt to the needs of your employees and the situation. Don't feel like you need to force a script on your employees if it's the wrong thing to do for the person on the other side of the table.
There may be information you have to pass on for legal reasons, but if your employee can't handle it, give them a break. Consider waiting a bit or coming back the next day for more information. Scripts can help you organize, avoid omissions, and control your emotions, but you need to be flexible in your expressions depending on the situation. Act as you would want your leaders to act.
3. Support for affected employees
While the actual firing can be hard work, a leader's real work begins after the list is created. From here, we start helping them find their next role.
In many cases, it is possible to place team members into other open positions within your company, either directly or by highly recommending them to leaders who are still hiring. It can also be helpful to introduce or introduce leaders from other organizations.
In my case, I organized a get-together for laid-off employees and gave everyone a copy of my job search manual, “What Color Is Your Parachute.'' We sat down together, discussed job search tips, and created a process to share leads with each other. This collaborative process provided affected employees with a support network and additional resources to take next steps.
4. Maintain your team
If you yourself remain with the company, another challenge for you as a leader is maintaining and motivating your team.
There will be a lot of emotions and concerns for the team after a series of layoffs. These include sadness or anger toward departing colleagues, feelings of being let down by the company, worries about one's own job, and concerns about how to handle the newly disowned job.
All of these concerns are of emotional origin. Too often, especially in technology companies, we focus on logical explanations when employees (humans!) actually need help with their problems.
Give them time, space and support to adapt to the new situation. Next, set a clear path. Most employees can be rehired after termination if you help them understand how they and the company can succeed.
We need skilled, caring, and prepared leaders
Layoffs are a taboo subject that companies shy away from, so no one receives training on how to deal with them. But to protect yourself and your team, you need to arm yourself with the knowledge beforehand.
Most long-term leaders experience several layoffs during their careers, and great leaders recognize that layoffs are relatively common. Knowing this, they are better prepared to navigate the layoff rather than being caught off guard.
I called for my employees to be fired, and I was fired myself. Looking back on both experiences, I can say without a doubt that skilled, caring, and prepared leaders make a huge difference.
Ethan Evans is a former Amazon Vice President with more than 23 years of executive experience.
