Shaul Olmert, who retired as CEO of Playbase at the end of 2019, and founded the start-up Piggy about two years ago, who is developing a revolutionary mobile app for Generation Z that combines creativity, social media and writing, wrote today (Sunday) on Twitter a long thread about the lack of sharing Of the high-tech industry in difficulties in the industry.
Olmert recalled his tweets against the background of the news of the layoffs and cuts coming from the industry on a “traumatic day” about four years ago, when he was forced to lay off several dozen employees from his previous company – Playbase. Although Olmert remembers the process as complex, difficult and shaky, he also provided his readers with ten tips on how to properly manage a layoff move in a start-up and how to proceed thereafter.
We in high tech less like to talk about the difficulty. More like parties, fun days, changing the name of the profile on LinkedIn to “we’re hiring” and talking about the problems, when there are, from a place of empowerment (“there are crises but how lucky I am to be such a great CEO and manage them like the man I am”) . And yet – the current crisis climate and the growing news
– Shaul Olmert (@shaulmert) June 26, 2022
These are Olmert’s tips for the inevitable dismissals:
1. All the cuts in one go. Take a few more planning days, but make sure there is no second wave afterwards, because it finally kills the trust of the people who will stay.
2. Get help from an external consultant (preferably one of the investors) – you are not able to detach emotional components from making these decisions because you have a good heart. Need someone to look at things from the outside and neutralize politics, history and anxieties.
3. Be 100% transparent with employees. Enough selling stories, we are a company that has difficulties and let’s admit that we are not perfect. Will take a ton of weight off your shoulders.
4. Be transparent with the media as well – give all the numbers, without scribbling and without rounding corners. There is no difference in image between firing forty or fifty or sixty. There is a big difference in losing credibility.
5. Before the layoffs themselves – take your anchors for a conversation – the staff members you intend to stay and lead the company after the change. Make sure they are with you, give them a few days to figure out if they are staying or not, and if so – be committed and lead the move with you.
6. Immediately after the move – enter the employees. Tell them what you are going through emotionally. It is important that they see that it is difficult for you on the one hand, and that there is an operational plan on the other.
7. Make sure you have a shoulder to cry on. Spouse, friend, brother, psychologist – do not be Superman. It is difficult for you because you are human beings and human beings need someone to lean on.
8. Once employees who have left find a new home – share with other employees. Show them that you care and that you will always take care of them even if one day you have to fire them.
9. Remember that adversity creates opportunities – a time to promote someone young, a time to give people more challenge and responsibility. Make sure the remaining people get a horizon.
10. Did you return home after all this difficult experience? First thing – drink alcohol. Joint (only with a legal medical prescription of course!), A Netflix movie, Walt Whitman songs, Mommy’s confiscation. You deserve to pamper yourself, you have faced a great challenge and you deserve some satisfaction. Love you, everyone in the situation is always welcome to contact and share. I’m here.
Olmert concluded the thread with thanks to his readers for the kind words he received in the comments and stressed that “a manager should be humane and empathetic to his employees” and even more, he noted that “it is harder for fired employees. They are the center and they focus, you still have work “.