How WeWork Intelligently Laid Off Employees and What You Can Learn From It

WeWork, a flexible office space provider, faced significant challenges and layoffs in 2019 due to financial difficulties and a failed initial public offering (IPO). 

While the company’s handling of layoffs was met with criticism in some quarters, there are lessons that other organizations can learn from this experience:

Communication is Key

WeWork’s communication during the layoff process was criticized for being abrupt and chaotic. 

Instead, companies should communicate clearly and empathetically with affected employees. 

Provide them with ample notice, as well as support, such as outplacement services and assistance with job hunting.

Prioritize Transparency

Transparency is crucial during layoffs. 

Companies should be transparent about the reasons for layoffs and the criteria for selecting employees. 

WeWork’s failure to provide a clear rationale for the layoffs added to the confusion and distress among employees.

Treat Departing Employees with Respect

When conducting layoffs, treat departing employees with respect and dignity. 

WeWork’s mass layoffs were seen by some as abrupt and insensitive. 

Provide exit packages that include appropriate compensation and benefits.

Legal Compliance

Ensure that all layoffs are in compliance with labor laws and regulations. 

Failure to do so can lead to legal repercussions and further harm your company’s reputation.

Focus on Retaining Key Talent

In times of financial difficulty, it’s essential to identify and retain key talent who are critical to your company’s success. 

Layoffs should be strategic and designed to keep your organization’s core expertise intact.

Provide Support for Employees’ Transition

Offer support services, such as 

• career counseling
• job placement assistance
• skill development programs

These support services can help laid-off employees transition to new roles more smoothly.

Assess Company Culture

Reevaluate your company’s culture and values. 

A toxic or unsustainable culture can lead to financial difficulties, layoffs, and reputational damage. 

WeWork’s cultural issues were a contributing factor to their problems.

Reflect on Leadership

Leadership is crucial during challenging times. 

Evaluate the performance of your leadership team and their decisions to ensure they are making the right choices for the company’s future.

Learn from Mistakes

WeWork’s mistakes serve as valuable lessons for other companies. 

When faced with layoffs or financial crises, learn from past failures and missteps to make more informed decisions.

Rebuild Trust

Rebuilding trust with your employees, customers, and investors is a long-term process.

Consistently demonstrate ethical and transparent practices in the wake of layoffs to regain trust.

Conclusion

Ultimately, the WeWork layoffs serve as a cautionary tale about the importance of effective communication, transparency, and respect when managing workforce reductions. 

By learning from WeWork’s missteps, other organizations can better navigate similar challenges while minimizing negative consequences for their employees and reputation.