When C. Harlan Johnston, chief executive of Getronics Government Solutions, realized he needed to eliminate 70 of the company's 2,500 jobs last fall, he decided to try to lay off his associates as humanely as possible.

Coached by an outplacement firm, Johnston devised a rigorous 50-day schedule to prepare for the job losses. During that time, he and other top executives at the McLean, Va., information-technology concern learned how to break the news gently and deal with layoff victims' emotional reactions. Getronics also substantially increased severance pay and made sure the cuts wouldn't disproportionately affect minorities and women. Including outplacement counseling, the layoff preparation cost the small concern about $150,000.

Getronics's efforts represent a sharp contrast with corporate practices during the downturn of the early 1990s. Back then, many employers slashed jobs across the board, provided skimpy severance pay and gave laid-off workers scant warning. Some businesses still take that approach today.

But now, amid daily announcements of major corporate cutbacks, more companies are trying to show sensitivity as they eliminate jobs. The tight labor market is a huge factor. Realizing they may need to hire again soon, bosses want to retain the loyalty of those staffers who are left behind. In a seller's market, "employers are more sensitive to their reputations and how they are viewed during layoffs," says Roger Herman, chief executive of the Herman Group, a management-consulting firm in Greensboro, N.C.

Some concerns help laid-off staffers by reaching out to their communities. Motorola Inc., which is eliminating 2,500 of the nearly 5,000 jobs at its Harvard, Ill., plant, has teamed up with the local economic-development committee to find job leads for affected employees. Later this month, the Schaumburg, Ill., technology and equipment giant — in conjunction with its outplacement-counseling firm — will also host a job fair with more than 40 Harvard-area employers.

Lucent Technologies Inc., which faces the task of cutting 10,000 jobs, now requires managers to attend training to learn how to wield the ax. The telecommunications-equipment maker used to make the training voluntary.

DaimlerChrysler AG's U.S. unit, which intends to lay off 20 percent of its work force, or 26,000 people, is using a wide array of internal outlets to better communicate details of its plans. The cuts will take place over the next three years, and the big car manufacturer is keeping employees informed through an internal television network, daily newsletter and bimonthly "tabloid" magazine. Salaried employees can also get information through the company's intranet service.

Even a few downsizing dot-coms are devising gentler approaches. The Internet industry has been widely criticized for shoddy layoff practices, such as ordering staffers to leave company premises immediately. Emusic.com Inc., which sells downloadable music, decided against rushing people out of its headquarters in Redwood City, Calif., when it laid off 36 percent of its staff in January. The 66 pink-slip recipients were given several days to say goodbye to colleagues and clean out their desks.

Emusic also tried to buck up morale among the 40 employees who remained at headquarters. The dot-com closed a portion of its floor so survivors wouldn't have to look at all the empty desks.

"It's kind of symbolic of a fresh start," says Steve Grady, Emusic's senior vice president of marketing. "It's like we're getting back to that small start-up feel without taking away the reality of what happened." (Seventy-eight employees also work out of the company's Chicago office.)

But Grady concedes that Emusic didn't do the best job of internal communication during an earlier round of layoffs last May that involved 40 staffers, or 20 percent of its work force. Then, the company spent most of its energy dealing with those being let go. This time, management approached the layoffs as a hardship for the entire company. "We wanted everyone to understand why the cuts were needed and how the decisions were made," Grady says.

--> Other businesses still haven't gotten the message, according to people being laid off. Some of the 400 PricewaterhouseCoopers LLP consultants who got pink slips in January have posted complaints on Internet message boards about a lack of communication from partners, their short notice and the indignity of being escorted out of the building the same day.

Elsewhere, some employees complain of learning they are being let go via e-mail. In January, Amazon.com Inc. used e-mail to lay off some Seattle-area telecommuters who couldn't attend a meeting at which the Internet retailer announced the cuts. An Amazon spokeswoman says the telecommuters were invited to attend any of 12 follow-up meetings.

Discovery Communications Inc. laid off about 75 staffers from its Discovery.com Internet unit last fall after a companywide e-mail mentioned impending structural changes. The Bethesda, Md., media concern says it took this approach "because we're a global company and needed to communicate with all of our offices," says David Leavy, senior vice president of corporate communications.

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Serial job cuts is another layoff strategy that strikes critics as poor planning. Xerox Corp. eliminated 2,000 jobs between last October and December. The big copier maker subsequently announced it would eliminate 4,000 more jobs during this year's first quarter, with additional cuts expected throughout the year.

The practice can be a real blow to morale, says Tom Rodenhauser, president of Consulting Information Services LLC in Keene, N.H., which tracks the consulting industry. While employers may come up with reasons for phased layoffs, he adds, "it means that the company didn't have the guts to do it the right way the first time."

Xerox spokeswoman Christa Carone says the company is staggering layoffs because it is selling assets, outsourcing some operations and consolidating, factors that will affect overall employment. "It's a bit premature to discuss the end number," she explains.


Via The Associated Press

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