Layoffs have been making headlines for the last year and according to Layoffs.fyi, more than 256,000 workers in tech alone have lost their jobs since the beginning of the year. With Spotify recently announcing a significant downsizing, affecting around 1,500 employees (17% of their workforce), the emotional impact is clear.
But amid the challenges, there are vital lessons we can draw from Spotify's communication playbook.
Let’s be real here, the decision to downsize is tough. Downsizing is not just about cutting costs. It’s not just about numbers, it’s about people and their lives. Whether due to a need for change or tough times in the market, it is without a doubt a hard call to make and to receive.
Here are 4 crucial lessons to remember.
Lesson #1: Transparency and compassion are key
What clearly sets Spotify's layoff announcement apart is how they handled it. In the news memo, Spotify CEO Daniel Ek clearly outlined the reasoning behind the decision and the provisions set aside for the impacted employees. This level of transparency is as crucial (yet unfortunately very rare) in helping employees understand the situation and navigate the changes ahead.
Moreover, Spotify showed compassion by offering affected employees approximately five months of severance pay, full healthcare coverage during the severance period, and outplacement support to assist them in finding new job opportunities.
Lesson #2: Leadership must take ownership of the decision and communicate directly with employees
During times of downsizing, leaders must step up and play a major role in communicating the decision to the affected employees. It is not the time for leadership to hide away and avoid addressing the situation. Spotify's layoff announcement was not just a memo from the HR department; it came directly from CEO Daniel Ek.
Thus, demonstrating leadership ownership and accountability for the decision taken. When leaders take responsibility for tough decisions, it helps foster trust and confidence in the organization. With a personal delivery of the message, leaders show that they understand the impact of the decision and are willing to face it head-on.
Lesson #3: Collaboration between communications and leadership is crucial
Effective layoff communications require collaboration between the communications department and executive leadership. When communicators have a seat at the table during discussions about significant decisions, they can ensure that the right messages are conveyed to employees. In the right way.
Spotify's strong layoff communication can be attributed to the close collaboration between the communications department and executive leadership. This level of alignment ensures that all stakeholders, both internal and external, receive consistent and accurate information during challenging times.
Lesson #4: Navigating change isn't just about mitigating damage; it's about fortifying the bonds that hold your people together
The last and perhaps most important lesson of them all.
During periods of change, such as layoffs, internal communication becomes the crucial thread linking every individual and team member. It becomes the mechanism for transparency and clarity, addressing employee concerns, and fostering trust and credibility. By providing a platform, such as an employee app, for open dialogue, internal communication builds a sense of unity and shared purpose, emphasizing the organization's vision and values.
Additionally, contributing to employee well-being by acknowledging the emotional impact of change and offering support. As a feedback mechanism, it ensures that the voices of employees are heard, promoting inclusivity and engagement.
Here is what you should AVOID when communicating layoffs
While Spotify's layoff announcement serves as a shining example of effective communication, not every organization handles layoffs with the same level of grace. It is crucial to avoid certain pitfalls that can lead to negative consequences for both the organization and its employees:
- Employees want to hear directly from their leaders and understand the reasoning behind the decision. When leaders hide away and fail to address the situation, it can lead to anger, resentment, and a breakdown in trust. Communicators must encourage leaders to step up, communicate openly, and provide reassurance to the affected employees.
- There have been cases where organizations have mishandled layoffs, causing unnecessary distress and damage to employee morale. For example, the Google badge swipe debacle earlier this year, where employees were notified of their job loss through an email and denied access to their workplace, is a prime example of how not to handle layoffs. Such actions undermine the humanity of the workers and can have long-lasting negative effects on the organization's reputation.
Are the learnings here relevant for earning the badge of good communication?
The lessons based on examining Spotify's approach to change communication resonate far beyond the pursuit of a mere "badge of good communication." Managing communication during times of change is undoubtedly challenging, we're sure you know, yet its implications extend to the long-term success and reputation of a company. So here are the four things to keep in mind:
- Transparency and compassion matter
- Leadership must take ownership of the decision and communicate directly with employees
- Collaboration between the communications team and leadership is not a luxury but a necessity
- Navigating change is about fortifying the bonds that hold your people together
