Layoffs - Bad News, Bad Technique

Image via Wikipedia

Tech startups make cuts

Robert Scoble has been discussing venture capital and the fact that the economic slowdown has hit Silicon Valley on his blog from time to time over the past couple of weeks.

Earlier this week, Scoble wrote:

TechCrunch started a page to keep track of layoffs in the startup world.

Me? I’m seeing tons of depressing news hitting our economy. That’s what I get for watching CNBC and reading TechMeme.

But, there were a group of companies funded this week too and there are plenty of jobs open. It sure is an interesting time to watch the startup community right now.

Today on MarketWatch.com, Therese Poletti described the beginning of a "startup implosion" that included layoffs at companies including Zillow.com, Internet radio station Pandora, and AdBrite. Even more established companies are being affected with pink slips forthcoming at eBay and Yahoo.

TechCrunch reports layoffs this week atat Zillow, Pandora, Zivity, AdBrite, Hi5, Jive Software, and Redfin. The week before was Seesmic, and before that eBay.

Bad News, Bad Technique

Layoffs and loss of business are starting to trickle down to other business sectors as well. This week I heard of reductions involving a company I have been involved with in the past. The news is fairly brutal, and definitely not a "best practice" to be followed.

In the first example, a small group of employees met with visiting managers from out of town, who discussed the need for austerity in the short term, and the opportunities for growth in the long term. At the end of these meeting, two associates were called into the office and met with a manager and HR. One of them was told that their position was being absorbed by other personnel.

The manager then went to discuss how there were still opportunities out there and that things would be okay. Finally the associate asked: "If they are going to be doing my job, what will I be doing?" The reply: "That is totally up to you. You will have a lot of time to try new things. Clean out your desk."

Really bad technique! Even in hard times, companies and HR can do better. This is part of the reason many people are clamoring for the return of FuckedCompany.com.

Related articles by Zemanta

• Keeping Count: The TechCrunch Layoff Tracker
• Redfin Layoffs Bode Ill for Real Estate Startups
• Redfin employees see pink in 20 percent layoff
• Real-Estate Startups Reeling as Zillow Lays Off a Quarter of Its Staff
• Will this recession change web 2.0? - Part 1
• Trulia: Bucking the layoff trend
• #23 and now over 100....
• Yahoo skids to $13, revises layoff plan [Meltdowns]
• It's All About Layoffs
• A Breakdown of the Effects the Economy Will Have on Startups