Republic layoffs providing communication lesson for public companies

By on July 9th, 2009 In Social Media

chopping blockBack in the days before social media, even a high profile company could lay off its employees in relative privacy. Pink slips would go out, employees would be walked out, and that would be that. Your company spokesperson could release a standard holding statement and folks would move on.

Fast forward to last night at the Arizona Republic and I think we can all appreciate how much things have changed. If you were following the events on Twitter and/or the blogosphere, you basically got a play by play on how things went down directly from those affected and their co-workers. We know the layoffs included about 20 people. We know they came via telephone calls after business hours last night. We know some of the names of folks who were affected. And we know that many people didn’t like the impersonal way Gannett handled the event. And it hasn’t even been 24 hours — imagine what we’ll know in the next few hours and days?

My sympathy goes out to all those who lost their jobs yesterday. Been there. But the question for me today is how should highly public companies handle layoffs in the age of social media?

My initial reaction is to suggest they be proactive and take a lesson from the PR community — try to control the message before it controls you. Gannett execs should have been on Twitter before the layoffs trying to frame them with respect to their failing business model. Randy Lovely’s memo to employees was leaked the minute it hit the street, so perhaps he should have tweeted the memo on his own so at least he could have addressed the issues directly. And then he could have tweeted last night as the calls were being made. Etc. Etc.

I don’t know if there is a good way to reduce your workforce, but I do know that in the age of social media there are no secrets. Just head on over to Twitter and search #blackwednesday, #azrlayoffs and #gannettlayoffs and you’ll know pretty much everything the Republic staffers know. And that is either sad or great — depending on your perspective.

Comments

Rebecca Armendariz Says:
July 9th, 2009 at 9:42 am

Couldn’t agree more. I was monitoring talk on Twitter last night. Still can’t believe that Gannett has been so closed off with this round of layoffs. Word is going to get out, and the least Gannett could have done was control it a bit. If I were a business owner, I wouldn’t want upset ex-employees delivering my message to the masses. Big mistake on Gannett’s part…

And, my sympathy goes out to all those affected, too. I’ve had the great fortune to work on stroies with several of them over the years. I’m a journalist at heart.

Thanks for posting.

-B

Melanie McBride Says:
July 9th, 2009 at 10:00 am

Great blog. My thoughts: There is no “controlling” the message any more, so that shouldn’t even be on the table. Nevertheless, Gannett definitely could’ve taken a lesson from its nemesis, social media, and been transparent about the layoffs rather than wait for the lights in the office to dim, and hide behind a telephone call with the news.

I am not surprised that Gannett didn’t engage with the Twitter chatter, and maybe best they didn’t. That would be like Nash watching Kobe take it all in the Finals. Sometimes you just need time to lick your wounds.

Jacqueline Says:
July 9th, 2009 at 10:10 am

Facebook also played an important part last night in relaying information to other employees. Seemed like everyone was logged on and chatting through facebook. People also used Twitter and Facebook to update their status if they had been affected and to just wish others good thoughts.

anon Says:
July 9th, 2009 at 10:28 am

the phone calls at home were better than when they had us come into work and sit by our phones and wait for the “call”. that was the republic in the 90s. very traumatic. people crying in clusters. standing up and wailing out loud. grown men/editors sobbing in front of everyone. poor sal caputo threw his coffee mug across the room and it hit a pillar instead of someone’s head. layoffs suck. i don’t think there is any one way to handle it. hope those who got the ax last night go on to good things.

Pat Elliott Says:
July 9th, 2009 at 10:41 am

First, my condolences to everyone impacted by the latest Gannett cutbacks. I encourage you to get involved with the Phoenix SPJ Chapter whose members have been very supportive in rebuilding lives and careers.

Social media is a blessing for the laid-off and puts more power where it needs to be – in the hands of the affected employees. When the Motorola Healthcare Division in Tempe was sold 10 years ago the only public information was the corporate spin in the press release aimed at shareholders. Local media didn’t dig or cover the human aspect of the story. We were the only division here reporting directly to corporate in Chicago. The result was that no other Motorola division in the Valley even knew that the acquiring company did not acquire all of the employees. Connecting with others took research, time, telephone calls, etc and made a bad situation much worse. Even if corporations continue to behave badly I’m glad that those impacted by their decisions are able to take more control of their futures today and move on. Life is much too short.

Matthew Dutile Says:
July 9th, 2009 at 11:55 am

Bottom line is, laying off is going to suck, no matter how it’s done. And it’s always going to be looked at as impersonal, well because it sucks.

I don’t agree that Gannett should have been on Twitter talking about it before. Or sending out memos before it was sent to the employees. Then we’d be raving about how employees found out about getting a layoff through Twitter. What kind of impersonal way to do it is that?

Best wishes to everyone who lost their job last night. I’m confident they will land on their feet and end up in great places.

Nunya Says:
July 9th, 2009 at 4:15 pm

I love journalism because we understand that you can’t control the news. You can only report it. We let you all worry about perception, even when the news hits us directly.
So let’s stop worrying controlling some fabricated message and worry more about getting this thing turned around.

Skye Callan Says:
July 9th, 2009 at 5:44 pm

Great post! I definitely agree with your point – “try to control the message before it controls you.” The difficulty in doing this though is along the lines of what Matthew mentioned: employees shouldn’t find out about the layoffs via social media outlets. So, a well thought out plan should be implemented to alert employees while managing the social media realm as well.

Danielle Sittu, ABC Says:
July 9th, 2009 at 6:33 pm

First, I’d like to pass on my heart-felt condolences to those who lost their jobs. I wish you well.

Regarding this blog, I have a question that I’m wondering if anyone has an answer to. Sorry in advance for the length of the question (and the comments), but it’s something I’ve been thinking of for a while.

I’ve been away from the corporate side of the business for about 7 years, but when I was working in corporate communications for a publicly traded company, I was very much aware of not violating the SEC’s Reg FD requirement. For those of you who don’t know, Reg FD (and I’m paraphrasing) is the Securities and Exchange Commission’s Regulation Fair Disclosure regulation which requires all public companies to mass communicate or disclose information that can potentially impact a company’s financials. The way I understood it, if news or information (positive or negative) could impact the value of a company’s stock price, it must be disclosed in such a way that is available to the masses.

While I know Twitter is a “public” way to disseminate information, is it considered enough of a fair disclosure? Or are there still too few in the “public” who use the tool for it to be considered mass communication?

Generally, my former employer would post news releases to various wire services so that the “public” could have the information all at the same time. The purpose of Reg FD was essentially to limit the potential of insider information and unfair stock trading.

Now, why am I asking this? I can’t help but wonder if legal requirements (or at least the way they are interpreted today) are preventing publicly traded companies from using and jumping on the social media bandwagon. Does anyone have experience with this? What do your legal departments say?

Finally, I don’t think it’s wise to ever post news of a layoff publicly before impacted employees know about it. In the best scenario, I think it happens simultaneous to the public announcement. At least in my experience, that’s how we stayed in compliance with Reg FD and in trying to do what was right by employees.

In any event, layoffs suck, and I’m sorry to hear about all of this sad news.

Tyler Hurst Says:
July 10th, 2009 at 9:06 am

Odd how that AZ has had thousands of layoffs, but we freak out because azcentral loses around 100 people? The entire newspaper industry is dying, people.

While I feel bad for everyone involved, this shouldn’t be a shock. If you’re still working for a newspaper, it’s time to help your company change its business model, because your industry isn’t going anywhere.

Journalism doesn’t require a newspaper, it requires an outlet.

Wendy Kenney @23Kazoos Says:
July 10th, 2009 at 12:36 pm

In 2002 I worked in HR for a Fortune 500 in Scottsdale. The layoffs had been meticulously planned up to the script they used. Those who weren’t available to meet in person were called on the telephone. The HR Director was such a chicken #*$*& that he had me do it! It was the most horrible thing I had to do! Some people were on vacation out of the country, others were far from home at company paid conferences!

Hey we all understand the bottom line, but it’s about time that companies treat their workers with compassion and dignity. They deserve it. I’m so sad for my friends at the Republic.

What’s good for Gangplank is good for Phoenix, me! « Says:
July 13th, 2009 at 12:15 pm

[...] in looking outside the Valley, I say no. It’s bleak, it’s hot, and depending on what day you pick up the newspaper, it could be disappointing. I’m just not buying the doom and [...]

Hello world! « a little backwards Says:
July 19th, 2009 at 11:35 am

[...] Valley PR Blog » Blog Archive » Republic layoffs providing communication lesson for public compa… [...]

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