How remote work complicates layoffs
News stories about how Google, Twitter, Amazon and Meta recently laid off their employees by email reveals one of the biggest challenges for companies transitioning to remote and hybrid work: lack of human connection.
In the past, layoffs were usually carried out face-toface, allowing for a more compassionate and human approach. By comparison, email layoffs feel — and are — cold and insensitive, which causes significant harm to the morale of remaining employees and the broader company culture.
You’re less likely to be trashed in the media for impersonal layoffs if you’re not a big company, unless of course your email is completely tonedeaf. For instance, Pagerduty CEO Jennifer Tejada apologized after sending an email to employees announcing that the company would be slashing 7 percent of its workforce. The email quoted Martin Luther King Jr., with Tejada writing: “I am reminded in moments like this, of something Martin Luther King said, that ‘the ultimate measure of a [leader] is not where (they) stand in the moments of comfort and convenience, but where (they) stand in times of challenge and controversy.’”
Another challenge with remote work layoffs stems from companies navigating the process of retrieving equipment from remote employees.
We solved this problem by having HR tell laid-off employees to donate to a local charity the furniture and any equipment that’s not costeffective to return. That way, IRS doesn’t get involved, since the furniture doesn’t end up on an employee’s W-2 form. Whether the employee actually donates the furniture is up to them.
And speaking of IRS involvement, layoffs can have significant legal implications; companies must be aware of the laws and regulations that apply to layoffs in their jurisdiction, and with remote workers, there are many jurisdictions to consider. The laws surrounding layoffs in a remote work environment can be complex and difficult to navigate, especially for companies with employees in multiple states and countries. To mitigate the risk of legal noncompliance during remote work layoffs, companies must seek expert advice.
A final challenge is how it becomes more difficult for managers to observe remote employees’ work, see how they interact with others and assess their contributions. This can lead to an incomplete or inaccurate picture of an employee’s performance, and as a result, managers may make decisions about layoffs based on incorrect information.
These problems stem from the proximity bias, the tendency of leaders to favor those who are near to them and with whom they build a personal relationship over remote workers, who are usually more productive than their in-office counterparts.
The shift to remote work has complicated layoffs in several ways, presenting new challenges for companies. With the right policies and procedures in place, companies can navigate the complexities of layoffs in the remote work era, minimizing the impact on employees and maintaining the health and well-being of their business.