The power dynamics of a layoff (and reclaiming some power)

Navigating the aftermath

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The NPR podcast Planet Money recently published an episode entitled "Anatomy of a layoff." In it, reporter Yoewi Shaw dives into the story of one laid-off employee.

The employee, V, was called down to a conference room and told by an HR rep that he no longer had a job. Not only that, but he wasn't allowed to return to his desk to gather his belongings. Someone else haphazardly threw everything into a box, and handed it to V. V was then told that he had ten minutes to leave the building or the company would call security. V was stunned — first by the loss of his job, and then by how he was treated.

An HR expert was invited on the show to talk with V months after the layoff. When she heard about his experience, she said: "That is horrifying, and I'm so sorry that happened to you. This was a series of poor decisions where the company decided that you were not a person and that you didn't matter. And that's not okay."

V's story isn't unique. The episode cites that 40% of Americans will experience a layoff at some point in their careers. From a CEO's firing of employees via Zoom to a friend of mine who found himself locked out of company systems one morning, companies can be exceptionally cruel during layoffs. And it's during those moments that a company's true colors shine through (if they hadn't previously). Does the company think about the people it once employed, or does it think only about itself?

There's an enormous imbalance of power

These days, people will immediately take to LinkedIn after a layoff. It's the fastest way to spread the word that you're looking for a new job. In the posts I see, people overwhelmingly express gratitude toward their former employer: grateful for the opportunity and singing the praises of their talented colleagues.

If I had to guess, many are fuming inside. Or heartbroken. Or in shock. Yet professional decorum drives many laid-off employees into silence. LinkedIn certainly has a cult of positivity, but the silence is more than that. Laid-off employees are afraid to speak negatively about a former employer, out of fear that they'll be perceived negatively by a new employer — no matter how badly they were treated on the way out. It's a pervasive imbalance of power (and what drove me to stay silent about my own experience for a year, even though I wanted to rail against what happened to me). The imbalance happens at the time of a layoff since the employee has little influence over the company's decision-making (affirmed by the HR expert on "Anatomy of a layoff") and seeps into the post-layoff experience.

Recently, some people have started to share their struggles. They're more willing to share about their post-layoff experiences, especially in securing a new job. They're facing a world where each job opening has HUNDREDS of applicants. Some require a slew of interviews or test projects, leading to hours poured into applying for a new role... only to not make it at the end. After months and months of being put through the wringer, some job seekers are understandably at the end of their rope.

Taking power back

Vox reported recently that OpenAI has an extremely restrictive offboarding agreement. It includes a non-disparagement clause: former employees are forbidden from criticizing the company. If they violate it, they can lose their vested equity in the company. This is highly unusual. Companies will often reclaim unvested shares when an employee leaves, but vested shares are typically considered "owned" by the employee. CEO Sam Altman later said he was unaware of this clause in the employee agreement, and an internal memo circulated saying that employees wouldn't lose any vested shares. Regardless of the backtracking, at some point in the company's history, someone decided it was a good idea to force employees to stay silent about their experiences.

A company I'm aware of laid off 75% of its workforce, right before the end of the month. In the U.S., this means that the company no longer had to cover employees' health insurance, and coverage would end in a matter of days. The decision by the company was cruel, and employees (and their families) suffered in the aftermath. Some could no longer access necessary healthcare. Others couldn't find a job within the timeframe of their state's unemployment insurance coverage. International employees were left scrambling. While some companies may deem layoffs necessary for survival, others can even benefit from inflicting pain: their stock will see a boost after layoffs are announced.

Filled with rage, many ex-employees took to Glassdoor to detail exactly what happened. For some, it was cathartic: a way to share the dehumanizing experience with the world. For others, it was a way to warn future employees. The company most certainly has some explaining to do, since job applicants frequently check Glassdoor and may question an employer's overall rating. In a small way, these ex-employees' actions are a way of taking power back. It's a way to inflict harm after they've been harmed.

Is it an eye for an eye? Perhaps. But capitalism has constructed a world in which companies can be exceptionally callous and not think at all about the harm they inflict on others. I've written before that I don't think terrible companies should exist in the world, but their behavior stays largely protected between employee agreements and societal norms.

I don't know why it's okay for a company to collectively destroy people's lives, but not ok for people to collectively destroy a company. Any instance of retaliation would seemingly be nothing more than karma.

Why exit interviews don't matter

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