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.

CEOs are getting creative with what they call laid-off workers. Here's what they should say instead.

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.