May 22, 2024 • 27min

Anatomy of a layoff

Planet Money

This episode tells the story of a couple, H and V, who experienced the trauma of a layoff. V was unexpectedly let go from his job, with the company claiming it was due to "budget cuts" and "not about his performance." The experience left V and his husband H with a lot of unresolved questions and anger about how the layoff was handled.

Anatomy of a layoff

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Key Takeaways

Layoffs are a common experience, with an estimated 40% of American workers getting laid off at least once in their careers
Layoffs can be extremely traumatic, leaving people with feelings of shock, anger, and unresolved questions
Companies often claim layoffs are "not personal" and about "changing priorities", but the reality is more complex
The HR process around layoffs is often dehumanizing, with poor communication, lack of empathy, and insensitive handling of personal belongings
Laid-off workers are left to grapple with the aftermath - the emotional toll, financial strain, and uncertainty about the future
Talking to an experienced HR professional can provide valuable insights and a sense of closure for those impacted by layoffs

Introduction

This episode tells the story of a couple, H and V, who experienced the trauma of a layoff. V was unexpectedly let go from his job, with the company claiming it was due to "budget cuts" and "not about his performance." The experience left V and his husband H with a lot of unresolved questions and anger about how the layoff was handled.

The episode is an adaptation of a 3-part series on layoffs produced by Yowei Shaw for her podcast Proxy. It explores the human impact of layoffs and tries to provide some answers and closure for H and V by having them speak with an experienced HR professional, Katie Maylard.

Topics Discussed

The Layoff Experience (5:00)

V was called into a surprise meeting with his boss's boss and an HR rep, who informed him he was being laid off due to "budget cuts"
V was shocked, as he had never received any negative feedback about his performance
V was told he had 10 minutes to leave the building, and his personal belongings were packed up by someone else, with a coffee spilled on them
The experience was extremely traumatic and dehumanizing for V
H, who was working remotely that day, tried to comfort V when he got home, assuring him they would be okay financially

The Aftermath and Anxiety (8:17)

In the weeks after V's layoff, H became fixated on the possibility of being laid off himself
H scrutinized every interaction with his boss, looking for signs he might be next
H felt like a "conspiracy theorist" but couldn't stop obsessing over the potential of another round of layoffs
When the day of the expected layoffs arrived, H's boss was laid off instead, leaving H relieved but still shaken by the experience

Seeking Answers and Closure (12:42)

H and V had many unresolved questions about the layoff process and how the decision was made
They wished they could speak directly to the HR rep who laid off V to understand the reasoning and get a sense of closure
Since H still worked at the company, they couldn't risk reaching out to the actual HR rep
Instead, they spoke with a proxy HR expert, Katie Maylard, to get insights into the layoff process

Insights from the HR Expert (16:35)

Katie acknowledged the layoff experience was "horrifying" and apologized on behalf of HR professionals
She explained that layoffs are often driven by strategic decisions, not individual performance
The decision of who gets laid off can be arbitrary, based on factors like "who was the last person hired" or directives to cut a certain percentage of staff
Katie noted that the lack of empathy and poor communication from the HR rep was unacceptable, and that HR should treat laid-off employees as if they might return someday
She suspected the company may have spaced out the layoffs to avoid triggering the WARN Act, which requires 60 days' notice for large layoffs

Finding Meaning and Closure (27:41)

After the conversation with Katie, H and V felt they had gained some closure on the lingering questions about the layoff
Connecting the logic of how layoff decisions are often made, rather than seeing it as a personal attack, helped V make sense of the experience
The opportunity to ask questions and get an empathetic response from Katie was meaningful for H and V
While the trauma of the layoff experience remains, H and V felt they had a better understanding of the process and could move forward

Conclusion

This episode highlights the profound emotional impact of layoffs, even when companies claim the decision is "not personal." The story of H and V illustrates the shock, anger, and uncertainty that can linger long after a layoff.

By speaking with an experienced HR professional, H and V were able to gain valuable insights into the often opaque and dehumanizing layoff process. They learned that layoff decisions are frequently driven by strategic and financial factors, rather than individual performance, and that the lack of empathy and poor communication from HR is all too common.

While the trauma of the layoff experience cannot be erased, the conversation with Katie provided H and V with a sense of closure and understanding that many laid-off workers never get. This episode serves as a powerful reminder of the human toll of layoffs and the importance of empathy, transparency, and care in how companies handle these difficult situations.