Appendix E: Sample Speech - Layoff Announcement (Round 3 of Cost Cutting)


Good morning. Thank you for attending this morning. This is our third meeting to discuss our efforts to remove $25 million in costs so that we may save our company. We have completed two rounds of cost cutting.

In Round 1 we were able to remove $10 million in costs, leaving us with $15 million more to cut. In Round 2 we explored ways to use alternatives such as job sharing, contracting, and temporary assignments to pare costs further. The results are in, and we have reduced our costs by another $10.3 million. I want to take this opportunity to thank those employees who have agreed to these arrangements and for their part in helping us.

I said at the first meeting that I would always be honest with you. I added that I would prefer to have no layoffs, but there was a high probability these would have to occur. Unfortunately, I was correct in that prediction. We still have almost $4.7 million in costs that must come out. Our only alternative now is to reduce our employment by approximately 94 positions during the next week. We have identified those who will be asked to depart through the process of skill assessment that I described in our last meeting. The process has been fair, and it has taken each individual employee into account.

Let’s take a minute to reflect on what has happened and what we have accomplished over the last few weeks. We have to remove $25 million from our operating costs. It is a step that must be done to save the company. We have tried to act as wisely as possible in doing so, first by exploring ways to cut costs without influencing employment and then by finding alternatives to full employment that would minimize the impact of a layoff. How well have we done? Let me share numbers with you.

If we had gone straight to a layoff, we would have had to cut our work force by 500 people. That represents about one-third of our total employment.

But we did the smart thing. In Round 1 we looked for costs to cut without a layoff. In Round 2 we introduced alternative work arrangements. Those actions allowed us to cut the potential layoff from 500 jobs to only 94 jobs. I hope you will agree with me that it was worth it!

Clearly, this is not good news for those of you who will be laid off. I know there is nothing we can do to make up this loss to you. I commit, however, to acting with the greatest dignity and respect in conducting this process. Specifically, I have directed senior managers to provide the following:

  1. The process will be handled personally. There will be no anonymous or generic letters or e-mails.

  2. Everyone laid off will be provided a financial severance package based on tenure with the company and level in the organization.

  3. Everyone laid off will be provided continuation of benefits (commensurate with severance). You will also be eligible to purchase 18 months of health insurance at the company’s rate under the federal COBRA law.

  4. Everyone laid off will be provided outplacement services. We have retained XYZ Company to provide you office space, office services, counseling, interviewing practice, and r sum preparation for a thorough job search.

  5. We are not going to forget you after you leave. We are going to take the following steps to keep the door open:

    1. We will include you on the invitation list for all company events, reunions, and picnics.

    2. You will retain your membership in the company health facilities and are welcome to use them any time, though for a fee once you leave.

    3. You will be among the first considered for jobs when and if we can hire again.

Let me close by thanking all of you for your valiant efforts and contributions to the company over the last several weeks, months, and farther back—years. You have indeed saved our company. I am convinced that we will succeed, and I am looking forward to that journey that will take us to new levels of growth and success in our enterprise. I deeply regret that not all of us will be able to make it. For those who may not be making that journey with us, I want you to know that it has been my goal from the beginning of this business crisis to avoid layoffs if at all possible. I want to apologize to you for not successfully finding a way to do that. I want to express my personal thanks for the years of service you have put into this company. It will be a painful separation for both of us. We will be doing the best we can to assist you in finding other employment, and I hope one day under better business conditions that some of you will be back with us.

Thank you very much. We appreciate your ongoing hard work and your understanding during this difficult time.




The Headcount Solution. How to Cut Compensation Costs and Keep Your Best People
The Headcount Solution : How to Cut Compensation Costs and Keep Your Best People
ISBN: 0071402993
EAN: 2147483647
Year: 2002
Pages: 143

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