economy
CEOs are getting creative with what they call laid-off workers. Here's what they should say instead.
PR experts said phrases like these can affect a company's long-term success. Their biggest suggestion: Don't blame AI for C-suite decisions.
TL;DR
- Bill Winters of Standard Chartered used the term "lower-value human capital" to describe employees facing layoffs, later apologizing.
- Other CEOs have used labels like "builders," "sellers," and "measurers," or stated they are letting go of "roles that do not adapt."
- PR experts suggest avoiding "earnings call language" in real conversations and instead using phrases that would be acceptable if said directly to the affected person.
- Blaming AI for layoffs can backfire; companies should own the decision and explain the reasoning clearly, such as restructuring due to anticipated AI capabilities.
- It's crucial to separate the worker from the role, acknowledging that roles become obsolete, not people, and to offer genuine support such as severance and transition assistance.
- Poor communication during layoffs can damage a company's reputation, affecting future recruitment and team morale.
- Companies that communicate layoffs empathetically with concrete benefits are more likely to maintain their long-term success and reputation.