Layoffs are in the news again and in a big way. Each day brings a new headline about large company layoffs. This week, the big news was Citigroup’s announcement that they will reduce headcount by 52, 000 over the next year. Despite what some headlines screamed, Citigroup is not laying off 52,000 employees. Some of these reductions will come from attrition and asset sales. Nevertheless, the pain is real at Citgroup and the layoffs are significant.
Back in 2005 and 2006, I spent a lot of time researching and writing about layoffs. Over the next few weeks, I will revisit some of these findings on this blog. Layoffs are a type of strategic change. Obviously, they are not the type of change managers hope for. I’ve never watched a strategic change presentation with a slide that said “Year four: reduce headcount by 25%”.
For now, here are links to two of my media interviews about layoffs from 2006-2007. The first interview considered the investor implications of layoffs and was published in The Wall Street Journal. The second interview discussed layoffs in the pharmaceutical industry and was published on ere.com.
Why Investors may do Well with Firms that Avoid Layoffs by Herb Greenberg, The Wall Street Journal, published on Sept 9, 2006. (subscription required to read full article)
Awaiting Pfizer Cuts, Business Expert says Pharma Sales to go through ‘Painful Transition’ by Elaine Rigoli, ere.net, published on January 17, 2007.
