Minimizing the Negative Effect of Employee Layoffs through Effective Announcements

A prescriptive model for announcing layoffs is presented. The model is based on a thorough literature review and indepth case analysis of eight companies which announced layoffs. Based on the model, ten recommendations for effective layoff announcements are presented and discussed. Because the cases′ analysis revealed that most strategies relating to the announcements were superficial, the major recommendation is to develop a thorough strategy. This model should help to develop an appropriate strategy. The nature of the layoff and organizational dynamics are first considered in this model. Other variables considered are the source of the announcement, the channel used to present the message, the timing of the announcement and the message itself.