| One recommendation I have is to clarify the terminology. I'd call it a "layoff" if it is expected that business conditions will improve and employees will be given the option to continue their employment at that time. If it's a permanent situation then I'd call it something else like "dismissal for business reasons" or "downsizing due to market conditions." Personally what I'd love to see companies do is: - executive staff and management taking pay cuts (ideally zero pay for C-level execs and directors) first - offering an option of reduced hours and/or pay - offering an option to return to work if business conditions are expected to improve - offering ownership or open source agreements for canceled projects if possible - providing at least six months of severance pay for anyone who is dismissed, paid immediately along with full vacation and sick day allowances - immediately vesting any pending equity and options for anyone who is dismissed - providing office space and placement services which people can use while looking for a new job - working with other companies to provide jobs, even temporary or contract jobs - eliminating noncompete restrictions if any - telling everyone at the same time, as soon as possible - honestly explaining the situation and how and why people were selected - honestly explaining the company's financial situation - being open to creative suggestions from employees for alternative options - giving two weeks' notice, much as employees would be expected to do - sponsor a company alumni organization (startupalumni.org) with social events, seminars, and other events, to enable people to keep in touch - provide alumni email addresses (@startupalumni.org) |
It is a layoff by your terminology, because we're in that insane VC-money world ("poison pill" as I've seen it called on here!) where it's "go big or go home". So the plan is we win it all back, and we re-hire everyone (although who would ever re-join after a layoff I don't know, but that would be the plan), the alternative is complete shutting down.
Re: exec staff pay cut. We can't lay people off to save ourselves, that's sociopathic. I can't do $0 though, I get paid 20% more than a senior engineer here, and I've not got capital investments.
Re: reduced hours/pay (or furloughing as someone else called it) is a great idea. I used to dream of the 4-day work week, ideally under better conditions...
Not enough money in the bank to do 6 months severance, but more than 2 is available along with all leave.
We'll lose the office too, so can't do office-space :(
Most of the others are doable I reckon!