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BACKGROUND: A new CEO took over a Fortune 50 company and decided to shut down two languishing business units, affecting 300 people.

WHAT WAS DONE RIGHT: As soon as the decision was taken, the CEO conducted a townhall where he explained why the step was a business imperative. The

business units were making losses for the past five years, and the parent company was against any further investment. If they were not closed, the two units might jeopardise the existence of the larger organisation.

The CEO decided to finish the winding-up process in just three days, following which employees were given paid time-off so that they could focus on finding their next option. He also garnered support from all employees, asking them for contacts and references to help the affected get placed. An in-house job portal was created to share the information seamlessly. Everyone pitched in, and a good many people got placed through friends.

TAKEAWAY: It is best to tell your people upfront what the options are. While the decision to part ways is never easy, the leaders can soften the blow substantially. People knew the two divisions were making losses. So, they felt it was a fair decision. As everyone was informed, it did not lead to rumours or put the remaining employees under stress. Involving the entire organisation to help with placements also provided a social support system and took away the potential stigma attached to the decision.