“The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy.”
Every week, it seems like I hear about another company doing mass layoffs.
Many of them point to AI.
In February, Block cut 40% of its workforce and said AI tools were part of the reason.
US employers have already announced 617,189 job cuts this year, according to Challenger, Gray & Christmas. AI was cited for 121,401 of them.
Last week, it was Canva.
My team uses Canva every day.
On November 3, CEO Melanie Perkins told employees the company was restructuring. About 22% of the company is affected. That’s 1,271 people.
It’s the first mass layoff in Canva’s 13-year history.
Canva didn’t blame AI directly. But Perkins wrote in her memo that new technology is changing how people create. She also said growth had slowed for the first time in a decade.
She called it “the hardest moment in our thirteen-year history.”
I’ve been on both sides of a layoff.
I’ve been laid off.
I’ve also had to lay people off as a leader.
It’s never easy. It’s never fun. It’s not something I wish on anybody.
1,271 people at Canva just got news that changes their lives.
Still, I applaud how Canva is treating their affected team members.
Everyone leaving gets at least 6 months of salary, no matter where they live.
They keep their healthcare coverage where Canva provides it.
They get career coaching, interview prep and a year of LinkedIn Premium.
They get to keep their laptops.
And Canva set up a fund with $10,000 grants for anyone who wants to start a business.
What we did when COVID hit
There’s a right way and a wrong way to do layoffs. And the best way is to avoid them altogether, if you can.
That’s what we tried to do when COVID hit.
In March 2020, I was responsible for technology at Arcadis, a global engineering and architecture firm.
Almost overnight, most of our people had to work from home. Our offices went empty. Nobody knew if it was safe to go in.
Clients wondered if their projects would be put on hold.
Our people were worried about their jobs, their salaries and their benefits.
Our technology team did a phenomenal job. We kept data secure, kept people connected and kept projects moving.
But what I’m proudest of is how our leaders set an example in a very difficult situation.
A lot of companies do the opposite.
They do everything possible to protect leadership pay, bonuses, incentive programs and shareholder returns.
They do that by cutting pay, benefits and jobs for the employees who have no say in the decisions.
We started at the top.
The whole leadership team made a commitment to keep the impact on our employees as small as possible.
We voluntarily took pay cuts. We gave up some of our own benefits.
It turned a scary, uncertain time into something people could manage.
When business came back, we came back stronger, with our culture intact.
4 rules for sharing tough news with your team
Not every hard moment is a layoff. It might be a reorg, a budget cut, a cancelled project or a decision your team won’t like.
When you’re the one who has to tell them, this is how I’d do it.
1. Be upfront and honest.
Tell them early.
When people don’t hear from their leaders, they assume the worst.
2. Support them through it.
Tell them what it means for them, what you’re doing to help, and when they’ll hear more.
3. Don’t protect yourself at their expense.
If you have a say, make sure leaders aren’t protecting themselves at the expense of their people.
If you don’t have a say, own the message anyway. Don’t hide behind “corporate decided.”
4. Make it as fair as possible.
Apply the same rules to everyone, including yourself.
What leaders need to remember
There will always be uncertainty in the world.
Right now is a really hard time for a lot of people.
Layoffs are never fun. The job market is tough. A lot of people are hurting right now.
As leaders, we need to remember that.
The way we treat our people today matters.
When we stand up for them. When we have their backs. When we’re honest with them, even when the news is hard.
All of it shapes the culture of a company and its long-term success.
Years from now, your team will remember how you treated them when things were hard.
That can be the difference between being remembered for the good things or the bad things.
It was true for us at Arcadis in 2020. It’s true at Canva today. And it’s true on your team.
Talk soon,
Justin
P.S. Face to face or by email? How would you want your boss to share tough news with you? Hit reply and tell me. I read every one.
