Lessons from Delta Outage
Delta experienced one of those crisis situations during which it's impossible to make customers happy. After cancelling 1000 flights on Monday, 775 on Tuesday, and more than 300 on Wednesday, the airline finally reports, "Delta's Flight Operations Return to Normal."
When the power outage first hit on Monday, now blamed on equipment failure, customers weren't kept informed about their flight status. In most cases, passengers received no notification, others received text messages that there flights were ready to board when they were not, and others sat on a plane on a runway for five hours. Because Delta's entire communication system was down, the company had limited ways of getting accurate messages to passengers. The failure does raise questions about Delta's backup systems, although CEO Ed Bastian said they have redundant systems.
On Monday on Twitter, representatives responded to customers, but they could say little other than, for example, "Hi there. I am really sorry for the inconvenience. Our systems are down everywhere. Hopefully it won't be much longer. *SD."
The company had kept the public updated on its website. A string of posts shows Delta's optimism-real or imagined-to maintain the airline's image:
Employees helping customers in Salt Lake City after outage
Delta's flight operations return to normal
Aircraft in Atlanta with beam of sunlight
Flight schedule continues moving towards normalcy
Also to keep customers loyal to Delta, grounded passengers got a full refund and a $200 certificate for a future flight. Bastian apologized in a video, below, and was interviewed on the Associated Press about the situation. His theme is "This is not who we are," which could work well for the company to isolate this incident and point to long-term successes that built the brand.
Discussion Starters:
- Do you agree with my assessment of "This is who we are"? What are the dangers of that communication theme?
- What's your view of Bastian's video? Analyze the audience, key messages, delivery style, and so on.
- What else, if anything, should the company have done on Twitter?
Time's Layoff Jargon
I'd like to see a layoff announcement without "realignment," "leverage," and "content creation." Time Inc. couldn't manage it in the recent statement about laying off about 110 of its 7,200-person team:
"Over the last couple of weeks, we have been realigning our organizational structure to better leverage our content creation, sales and marketing and brand development operations. Our primary objective has been to better position ourselves to operate with greater agility and optimize the growth areas of our operation. As a result, there will be some job eliminations. That is always painful but an unfortunate reality in today's business climate."
According to AdAge, employees aren't surprised, based on recent memos announcing new management and a new editorial structure. CEO Joe Ripp also admitted, "We're always looking at costs."
Part of the restructuring includes new ad teams for technology and telecommunications, pharmaceuticals, and automotive.
Discussion Starters:
- What's the harm in using jargon in a layoff announcement? What are some alternatives?
- Time representatives won't say when the layoffs will take place. How does this strategy affect employees? What are the factors involved in the timing decision?
Ikea Bungles Recall
Ikea has finally recalled dressers in China that could tip over if not properly anchored. In June, the company recalled 36 million dressers in the United States and Canada after reports that six children were killed. But Ikea skipped China because, according to a WeChat post, the dressers met local regulations.
Chinese news agency Xinhua criticized Ikea, referring to the company's "arrogance":
"The behavior shown contradicts to the 'Ikea spirit' that founder Ingvar Kamprad talks about, being helpful and responsible" and "China is a huge market, and should not be deprived of the high standards that the brand promises."
In a turnaround a few days after the WeChat post, Ikea recalled all dressers, which includes about 1.7 million in China. On a page on its Chinese website, the company announced the recall and reinforced its campaign, "Firmly Fixed," which encourages people to anchor certain products to the wall. Consumers also can read the recall FAQ.
Discussion Starters:
- What is Ikea's responsibility to communicate installation instructions? What is the consumer's responsibility to install furniture properly?
- Should Ikea have recalled all products? Did the company do the right thing after the criticism? What are the consequences of each decision?
Communications Around Shootings
More police shootings this week led to a peaceful protest in Dallas until a sniper killed five police officers, wounded seven more, and wounded two civilians. Videos and messages are shaping our understanding of the incidents and our perspective on how to solve the problem of ongoing violence.
Diamond (Lavish) Reynolds posted a video after her boyfriend, Philando Castile, was shot in a car in St. Paul, Minnesota. The video, viewed more than 5 million times, is graphic, showing the man dying while Reynolds narrates.
In a statement, Minnesota Governor Mark Dayton asked for a full investigation of the incident.
Another graphic video this week showed police shooting Alton Sterling in Baton Rouge, LA. The FBI has opened an investigation of this incident.
President Obama made a statement on Facebook and in video. After expressing condolences, he gave data showing "disparities in how African-Americans and Latinos are treated."
Today's New York Post's cover reads, "Civil War," and people aren't happy about it. One Twitter user called it "insanely irresponsible."
Discussion Starters:
- Assess President Obama's statements. What else is there to say?
- What's your reaction to the graphic videos (of course, you don't need to watch them-I could take only about a minute. In what ways do the videos help and hurt the victims and their families?
- What's your view of the New York Post front page? What are the dangers of this headline?
Responses to Boy's Death at Disney
A two-year-old boy was taken by an alligator at the edge of a lagoon at a Florida Disney Resort. His body was recovered 16 hours after the attack.
Jacquee Wahler, vice president of the Walt Disney World Resort, said, "Everyone here at the Walt Disney World Resort is devastated by this tragic accident. Our thoughts are with the family. We are helping the family and doing everything we can to assist law enforcement." Wahler also said, "We are conducting a swift and thorough review of our processes and protocols. This includes the number, placement and wording of our signage and warnings.''
The president of Walt Disney World also posted a short statement:
There are no words to convey the profound sorrow we feel for the family and their unimaginable loss. We are devastated and heartbroken by this tragic accident and are doing what we can to help them during this difficult time.
On behalf of everyone at Disney, we offer them our deepest sympathy.
Disney did display "No swimming" signs around the lagoon, and people are questioning whether this is enough. Alligators are common in the lagoons, but attacks are rare.
Orange County Sheriff Jerry Demings was interviewed on the day of the attack and then announced when the body was found, on June 16.
Discussion Starters:
- Should Disney do more to protect people? Research the situation before you respond.
- Beyond the statement you read here, what else, if anything, should Disney say?
Communications About Orlando Tragedy
The tragic shooting at an Orlando, FL, gay club has brought communications from local politicians, global mourners, and of course, presidential candidates. The killer's motive could be homophobia, terrorism, or both, depending on your perspective. With 50 people dead and another 53 wounded, this is the largest attack since 9/11 and has left people wondering how and why.
Here's a summary of communications about the event:
- President Obama's statement. Sadly, this isn't his first speech following a shooting tragedy in this country, and his message is consistent about needing more gun control.
- The National Rifle Association's op-ed in USA Today.
- News conference with police chief, FBI, and mayor, June 12 (below)
- Police chief's news conference, June 13
- Orlando college statements offering condolences and support.
- Presidential candidates' statements:
Discussion Starters:
- Compare the presidential candidates' statements. How do their positions differ, and which do you most support?
- Assess the news conference. How are the officials sharing responsibilities, reporting on events, demonstrating sympathy, and so on?
UCLA Responds to Shootings
It's another sad day of shootings, this time at UCLA, leaving two dead in what seems like a murder-suicide.
The university has published several communications to keep the community informed and help people deal with this tragedy:
- An email from Chancellor Gene Block, also posted on the university's website
- A news statement on the website
- A press conference with the Chancellor, posted on YouTube
Messages offer condolences and counseling, thank police and others who responded, and focus on healing. Trying to get back to some sense of normality, the university will resume classes except in the engineering building where a professor was killed. Provost Scott Waugh explains: "Obviously there's a lot of very distressed students, faculty and staff. And our goal within the school is to heal those wounds and make sure that they feel comfortable with the situation before resuming normal activities."
Discussion Starters:
- Who are the primary and secondary audiences for the university's messages?
- Assess the chancellor's press statement. What principles of delivering bad news and delivering oral presentations does he use?
Layoffs at Intel
'Tis the week of layoffs. Intel is cutting 12,000 jobs, and Nordstrom is cutting about 400. In a press release, Intel explained the rationale:
Intel Announces Restructuring Initiative to Accelerate Transformation
SANTA CLARA, Calif., April 19, 2016 - Intel Corporation today announced a restructuring initiative to accelerate its evolution from a PC company to one that powers the cloud and billions of smart, connected computing devices. Intel will intensify its focus in high-growth areas where it is positioned for long-term leadership, customer value and growth, while making the company more efficient and profitable.
The data center and Internet of Things (IoT) businesses are Intel's primary growth engines, with memory and field programmable gate arrays (FPGAs) accelerating these opportunities - fueling a virtuous cycle of growth for the company. These growth businesses delivered $2.2 billion in revenue growth last year, and made up 40 percent of revenue and the majority of operating profit, which largely offset the decline in the PC market segment.
The restructuring initiative was outlined in an e-mail from Intel CEO Brian Krzanich to Intel employees.
"Our results over the last year demonstrate a strategy that is working and a solid foundation for growth," said Krzanich. "The opportunity now is to accelerate this momentum and build on our strengths.
"These actions drive long-term change to further establish Intel as the leader for the smart, connected world," he added. "I am confident that we'll emerge as a more productive company with broader reach and sharper execution."
While making the company more efficient, Intel plans to increase investments in the products and technologies that that will fuel revenue growth, and drive more profitable mobile and PC businesses. Through this comprehensive initiative, the company plans to increase investments in its data center, IoT, memory and connectivity businesses, as well as growing client segments such as 2-in-1s, gaming and home gateways.
These changes will result in the reduction of up to 12,000 positions globally -- approximately 11 percent of employees -- by mid-2017 through site consolidations worldwide, a combination of voluntary and involuntary departures, and a re-evaluation of programs. The majority of these actions will be communicated to affected employees over the next 60 days with some actions spanning in to 2017.
Intel expects the program to deliver $750 million in savings this year and annual run rate savings of $1.4 billion by mid-2017. The company will record a one-time charge of approximately $1.2 billion in the second quarter.
Webcast Intel also announced first-quarter 2016 earnings today. The company will discuss the restructuring initiative during the earnings webcast scheduled today at 2:00 pm PDT on its Investor Relations website at www.intc.com. A webcast replay and audio download will also be available on the site.
According to Krzanich, the layoffs will result in "the highest revenue per employee in Intel's history."
For a while in class, I used former Intel CEO Paul Otellini's email announcing layoffs of about 1,000 managers. That seems like child's play now.
Discussion Starters:
- How would you summarize Krzanich's rationale for the layoffs?
- 12,000 is a big number. How well does Krzanich justify the decision? What should be done internally?
Nordstrom: Latest Company Laying Off Employees
Although Nordstrom has been a "Wall Street darling," as a Seattle Times article says, the company has announced layoffs of up to 400 employees. Sales for Nordstrom and discount store Nordstrom Rack are falling. The news comes after 120 technology positions and 14 manager positions were cut earlier this year.
In a press release, the company emphasized keeping up with changing market demand.
A Business Insider article explains the conundrum between facing an American consumer who doesn't want to pay full price and the company's desire to maintain its identify as a high-end retailer. According to one writer, heavy discounting "will ultimately drag everything down with it, including brand image, potentially quality and essentially the value of all things."
Discussion Starters:
- How should Nordstrom deliver the news internally?
- Write an email that the company could send to its employees announcing the decision. Try to adapt the press release to an internal audience.
Harsh Rejection Letters
Business Insider has gathered a fun lot of rejection letters to people who went on to have successful careers. One, to Andy Warhol, appears in Chapter 8 of the text book; others are to Harry Potter writer J.K. Rowlings and movie director Tim Burton.
Many are harsh. Forget about a "buffer" and letting the receiver down gracefully. The one shown here, about fantasy writer Ursula Le Guin's novel, starts with a short compliment, and then doesn't mince words. A letter to Gertrude Stein mocks her book: "Hardly one copy would sell here. Hardly one. Hardly one."
Some, although tough, probably gave good advice. A letter to comic book artist Jim Lee told him, "Your work looks as if it were done by four different people," and explains which parts were best and what he should work on: "Resubmit when your work is consistent and when you learn to draw hands." The artist agreed with the rejection.
Specific feedback is best, but it doesn't have to cut to the bone.
Discussion Starters:
- How do these examples differ from business rejections today? Why do think there is a difference? Consider the era and industry.
- What is the harshest rejection you have received? How did you react, and what did you learn from it?
Carrier Layoff Video Goes Viral
In a video taken by a Carrier employee, we see bad news delivered first hand. An executive announces that the furnace and heating equipment factory will move to Mexico-eliminating 1,400 jobs at the Indianapolis plant.
Understandably, employees are upset. Represented by the United Steelworkers union, they receive good pay, including overtime. Employees seem to like working at the factory, despite long hours and what a New York Times article calls "painstaking work." As one employee said, "It's pretty cool working there. And when you do it for 60 hours a week, people are like family."
Akhil Johri, Carrier's CFO says that factory moves and job cuts "painful," but essential "for the long-term, competitive nature of the business and shareholder value creation. We feel good about being able to execute on that." The company is concerned that it will go the way of the auto industry, unable to compete with international manufacturers.
Robert McDonough, a senior executive at United Technologies (Carrier's parent company), said, "This was a really tough decision. This will have a real impact on folks we care about and this community. We're an American company, but we compete globally."
Still, UT promoted the decision during a recent meeting with shareholders and analysts, who typically react positively to such news. As the NY Times explains,
"Wall Street is looking for United Technologies to post a 17 percent increase in earnings per share over the next two years, even though sales are expected to rise only 8 percent. Bridging that gap means cutting costs wherever savings can be found."
UT CEO Gregory J. Hayes is feeling the pressure of stock performance, and his 2015 bonus was cut by 50%. But, as article says, "with a total compensation package of $5.7 million, he made more last year than Carrier's factory workers could earn in several lifetimes."
Discussion Starters:
- What's your view of the decision? Consider both UT and the employees' perspective.
- Assess what we see of the Carrier meeting. How could the company have delivered the news differently? What, if anything, would change the employees' reactions?
250 Men's Wearhouse and Jos. A. Bank Stores to Close
Tailored Brands has announced the closing of about 250 Men's Wearhouse and Jos. A Bank stores. The men's clothing stores aren't producing expected profits, and a recent change worsened the situation. Jos. A Bank held a "buy-one-get-three-free" promotion for years, which annoyed consumers, but eliminating the sales strategy lost comparable-store sales 14.6%.
In a press release on its website, Tailored Brands explained the decision with quotations from CEO Doug Ewert.
"While our fourth quarter and full year results were consistent with our revised guidance, we remain very disappointed by the weak Jos. A. Bank results. Our transition away from unsustainable promotions has proven significantly more difficult and expensive than we expected. We do, however, remain confident that Jos. A. Bank offers a longer-term opportunity to profitably grow market share in the menswear business. Additionally, our Men's Wearhouse, Moores, and K&G brands continue to perform well, with profitability in line or ahead of our expectations. . . .
As part of our store rationalization program we plan to close approximately 250 stores during fiscal year 2016. The store closures fall into three categories. First, we expect to close 80 to 90 full-line Jos. A. Bank stores which we believe have limited potential for meaningful profit improvement. Second, we will close all Jos. A. Bank (49) and Men's Wearhouse (9) outlet stores. We have determined that outlet stores, which collectively were not profitable, are not sufficiently differentiated enough from our core offerings and have not resonated with our customers. Lastly, we intend to close between 100 and 110 MW Tux stores. These closings are a continuation of our strategy of migrating tuxedo rentals to full line stores and reflective of our new partnership with Macy's, Tuxedo Shop @ Macy's. We have refined our Tuxedo Shop @ Macy's rollout schedule and now plan to open 166 stores in 2016 with the balance of 122 stores to be opened in 2017."
Ewert did express his confidence in the remaining stores: "We do, however, remain confident that Jos. A. Bank offers a longer-term opportunity to profitably grow market share in the menswear business."
Discussion Starters:
- Analyze the company's statement. Looking at the organization, style, tone, and so on, which principles of business writing are followed, and which are not?
- How will employees react to this news, particularly after the decision to end the suit promotion?
More Takata Recalls
Parent company Daimler is recalling 840,000 vehicles, including 705,000 Mercedes-Benz cars. The statement title downplays the issue and blames Takata:
"Daimler recalls approximately 840,000 vehicles in the United States as a precautionary measure due to potentially defective airbag models from manufacturer Takata"
In its statement, the company gives expenses data and assures us that the financial impact is minimal:
"Daimler AG points out that both the dividend proposal and the employees' profit participation for the successful year 2015 as well as the earnings expected for financial year 2016 remain unchanged."
Daimler's positioning works well for the audience, and blaming Takata is a good move. The supplier is already in big trouble, with testimony from an engineer that the company hid airbag problems by changing test data and hiding parts, all while executives assured safety. During the deposition, the employee said, "'I had the data, but I wanted to go look for those parts. But when I went to look for the parts, because some of the parts had come apart, they were no longer available. They had been discarded.''
Ten deaths have been reported because of failing Takata airbags. In addition to Daimler, Honda, GM, Toyota, Volkswagen, Ford, and other vehicles have been recalled totaling about 24 million-so far.
Discussion Starters:
- Assess Daimler's statement about the recalls. Who are the primary and secondary audiences, and how well does the company address each?
- Research Takata and look for current news. What's your prediction for the company and its executive team?
Apple Reports Disappointing Results
On its Q1 earnings call, Apple reported slow iPhone growth and missed revenue targets. The Wall Street Journal summarizes results: "Apple said iPhone sales grew at the slowest pace since its introduction in 2007 for its first fiscal quarter ending in December." Business Insider, similarly, reports, "Apple's holiday-quarter revenue of $75.9 billion missed analyst expectations as well as the company's own guidance."
Of course, Apple's press release paints a different picture:
The Company posted record quarterly revenue of $75.9 billion and record quarterly net income of $18.4 billion, or $3.28 per diluted share. These results compare to revenue of $74.6 billion and net income of $18 billion, or $3.06 per diluted share, in the year-ago quarter. Gross margin was 40.1 percent compared to 39.9 percent in the year-ago quarter. International sales accounted for 66 percent of the quarter's revenue.
Our team delivered Apple's biggest quarter ever, thanks to the world's most innovative products and all-time record sales of iPhone, Apple Watch and Apple TV," said Tim Cook, Apple's CEO. "The growth of our Services business accelerated during the quarter to produce record results, and our installed base recently crossed a major milestone of one billion active devices."
Tim Cook did admit that the iPhone is increasingly expensive overseas because of foreign exchange rates.
Analysts don't seem too worried about the company's future. Of 14 analysts, 12 remain "bullish," while only two are "neutral."
Discussion Starters:
- Listen to the Q1 earnings call. How does the company handle the news?
- How well does Apple's press release summarize the results? Should anything else have been said in the release?
E. Coli Outbreak at Chipotle
An E. coli outbreak has caused Chipotle to close 43 stores in Oregon and Washington. The Center for Disease Control is investigating links between ingredients and 39 people falling ill. Fortunately for Chipotle, the CDC said it "does not have any information to suggest that Chipotle Mexican Grill locations in other states are affected by this outbreak."
The company issued a press release:
Chipotle Moves Aggressively to Address Issues in Washington and Oregon
Company voluntarily closes restaurants; replaces food; cooperates fully with investigation
DENVER--(BUSINESS WIRE)--Nov. 3, 2015-- On the heels of an E. coli incident that was linked to eight of its restaurants in Oregon and Washington state, Chipotle Mexican Grill (NYSE:CMG) has taken a number of immediate steps to assist investigators as they conduct their review of the incident in Oregon and Washington. Among the specific actions the company has taken since the incident began are:
- Immediately closing 43 restaurants in Oregon and Washington state out of an abundance of caution, even though only eight restaurants have drawn concern, while investigators search for a cause;
- Conducting additional deep cleaning and full sanitization of its restaurants in the area;
- Conducting environmental testing in its restaurants, and food testing in its restaurants and distribution centers in addition to testing being conducted by health department officials;
- Replacing all food items in the restaurants we closed, out of an abundance of caution;
- Batch testing some ingredients before resupplying;
- Continuing to help in the investigation; and
- Retaining two preeminent food safety consulting firms (including Seattle-based IEH Laboratories and Consulting Group) to help the company assess and improve upon its already high standards for food safety.
"The safety of our customers and integrity of our food supply has always been our highest priority," said Steve Ells, chairman and co-CEO of Chipotle. "We work with a number of very fresh ingredients in order to serve our customers the highest-quality, best-tasting food we can. If there are opportunities to do better, we will push ourselves to find them and enhance our already high standards for food safety. Our deepest sympathies go out to those who have been affected by this situation and it is our greatest priority to ensure the safety of all of the food we serve and maintain our customers' confidence in eating at Chipotle."
While no cause has yet been identified by investigating health officials, Chipotle continues to work swiftly and thoroughly with health department officials as they look to conclude this investigation.
The company's Twitter page has no mention of the closings.
Discussion Starters:
- Assess the company's press release. What works best?
- Should Chipotle include some of this news on its Twitter page? What are the arguments for and against this communication?
ESPN Layoff Message
These days, not a week goes by without a layoff message. The most recent is ESPN's, also posted on the organization's website.
The message is typical in some ways but not others. It expresses regret and focuses on future plans, yet doesn't mention the number of people leaving, which The New York Times reported at about 300, or 4% of the workforce.
PR Daily describes the bulleted list as "jargon-filled," but we have certainly seen worse.
Message from John Skipper to ESPN Employees
The demand for sports remains undiminished, though the landscape we operate in has never been more complex.
Our 36 years of continuous growth and success has been driven by our consistent willingness to reimagine our future, to embrace change and make the right choices for our business, including hard decisions that affect people who have been integral parts of our efforts.
Beginning today, we will be enacting a number of organizational changes at ESPN to better support our future goals – a process that will include the elimination of a number of positions, impacting friends and colleagues across the organization.
We carefully considered and deliberated alternatives before making each decision. The people who will be leaving us have been part of ESPN's success, and they have our respect and appreciation for their contributions. We will be as supportive as we can during this transition, including providing a minimum of 60-days notice, a severance package reflective of their years of service, and outplacement benefits to help them find future employment.
These changes are part of a broad strategy to ensure we're in position to make the most of new opportunities to build the future of ESPN. These ongoing initiatives include:
- Constant and relentless innovation, including integrating emerging technology into all aspects of our business.
- Enhancing our sales and marketing efforts with new tools and techniques that generate greater data, personalization and customization for our advertisers.
- Integrating our distribution efforts to better serve current and future distribution partners with our industry leading networks and services.
No matter how many times we've adjusted course to lead the industry over the years, the decisions affecting our employees are never made lightly. It never gets any easier, but it's a necessary part of our continued strategic evolution to ensure ESPN remains the leader in sports as well as the premier sports destination on any platform.
I realize this process will be difficult – for everyone – but we believe the steps we are taking will ultimately create important competitive advantages for our business over the long term. I sincerely appreciate your professionalism and continued support as we move forward to ensure the continued success of ESPN and assure sports fans everywhere the best is yet to come.
John
Discussion Starters:
- What key messages do you take from this announcement?
- Do you find the bullets "jargon filled"? If so, what revisions would you make?
- Why do you think ESPN broke tradition and omitted the number of people being laid off?
Twitter Layoff Email
As Twitter's new CEO, Jack Dorsey is taking quick action and laying off 336 people, which is about 8% of the company. Engineers are taking the biggest hit, but other departments will be "streamlined" too. Severance and other fees will cost the company between $10 and $20 million in the short term.
In his email to staff, Dorsey writes to avoid "corporate speak," which we see more in the company's 8-K filing: "The restructuring is part of an overall plan to organize around the company's top product priorities and drive efficiencies throughout the company."
From: Jack Dorsey
To: All Employees
Date: October 13, 2015
Subject: A more focused Twitter
Team,
We are moving forward with a restructuring of our workforce so we can put our company on a stronger path to grow. Emails like this are usually riddled with corporate speak so I'm going to give it to you straight.
The team has been working around the clock to produce streamlined roadmap for Twitter, Vine, and Periscope and they are shaping up to be strong. The roadmap is focused on the experiences which will have the greatest impact. We launched the first of these experiences last week with Moments, a great beginning, and a bold peek into the future of how people will see what's going on in the world.
The roadmap is also a plan to change how we work, and what we need to do that work. Product and Engineering are going to make the most significant structural changes to reflect our plan ahead. We feel strongly that Engineering will move much faster with a smaller and nimbler team, while remaining the biggest percentage of our workforce. And the rest of the organization will be streamlined in parallel.
So we have made an extremely tough decision: we plan to part ways with up to 336 people from across the company. We are doing this with the utmost respect for each and every person. Twitter will go to great lengths to take care of each individual by providing generous exit packages and help finding a new job.
Let's take this time to express our gratitude to all of those who are leaving us. We will honor them by doing our best to serve all the people that use Twitter. We do so with a more purpose-built team, which we'll continue to build strength into over time, as we are now enabled to reinvest in our most impactful priorities.
Thank you all for your trust and understanding here. This isn't easy. But it is right. The world needs a strong Twitter, and this is another step to get there. As always, please reach out to me directly with any ideas or questions.
Jack
Not everyone is happy about Twitter's communication. An employee tweeted this:
Discussion Starters:
- Assess Dorsey's email as a bad-news message. How does it compare to other recent layoff notices?
- How do you think Twitter missed a communication with Bart Teeuwisse? Do you think everyone was informed this way? What else could explain his finding out by trying to access his account?
Air France Employees Angry About Layoffs
Air France announced 2,900 job cuts by 2017, and employees didn't react well. The company had asked pilots to take wage cuts, but they haven't agreed.
The head of HR for the company was pictured without a shirt, trying to get through a group of angry employees yelling, "A poil, à poil" (off with his clothes). In this photo, security officers are helping the executive escape. The head of Air France for Orly airport also had his shirt ripped by the crowd.
The airline union and parent company Air France-KLM denounced the employees' actions, and company officials said they would file a charges.
From IB Times, Business Insider summarizes similar employee situations in France since 2009. Employees at a Goodyear tire company held executives hostage for 30 hours rather than accept 1,173 job cuts. In 2009, employees at Caterpillar held executives hostage for a night after layoffs of 700 were announced.
Discussion Starters:
- Try to explain the employees' perspective given the news and the country's history.
- What do you think the management team will do now?
- How would such an event go over in other countries?
Layoffs at Whole Foods
Whole Foods just laid off about 1500 employees, or 1.6% of the workforce. In an interview with Fortune, Co-CEO Walter Robb explained the company's growth strategy. A statement on the company's website describes the decision as a cost-cutting measure to reduce prices and invest in technology, and Robb outlines the plan for employees:
"This is a very difficult decision, and we are committed to treating affected Team Members in a caring and respectful manner. We have offered them several options including transition pay, a generous severance, or the opportunity to apply for other jobs. In addition, we will pay these Team Members in full over the next eight weeks as they decide which option to choose. We believe this is an important step to evolve Whole Foods Market in a rapidly changing marketplace."
Critics question how "generous" the severance is but admit that it's better than other retailers' beneifts. Mother Jones describes employees as "bitter," several have leaked their layoff letter.
Discussion Starters:
- Assess the layoff letter. Consider that it's an official document that employees are asked to sign.
- How well does Robb explain the rationale for the layoffs? Read the company's statement and watch the Fortune interview to decide.
Sheriff's News Conference About Oregon Shooting
A shooting at Umpqua Community College in Roseburg, Oregon, has left 10 people dead and seven injured. Douglas County Sheriff John Hanlin held a news conference to discuss the situation.
Following is my take on the statement:
+ He is not polished, as you might expect from a sheriff just hours after such a shooting. He shows appropriate emotion for the situation and timing.
+ He says early on that the victims and their families are their priority.
- He could have told the public what they need to know: that the shooter is dead. (He was shot by police and then shot himself.) This might have helped assure people that they are safe. The media statement on the sheriff's website clearly states that the shooter is dead. One reason the sheriff may have avoided this is the controversy around several recent police shootings in the U.S. Otherwise, it's not clear why he wouldn't include this information.
+ Then, he could have discussed the number of casualties, which he did clearly.
- Part of the statement could have been given by the university president. That is more typical in these situations, as we saw in the Virginia Tech shooting. (See President Steger's statement.)
+ He appropriately gave contact information and a place where people are gathering.
+/- The public information officer is understandably nervous in front of the camera. He could have been more confident when telling the reporter that they weren't taking questions, and he could have simply walked away from the camera when he was finished. It's not clear why the sheriff passed this part off to him-possibly he wanted the officer to have some media exposure; although a terrible tragedy, this is a very big deal for the town.
Much publicity is surrounding President Obama's statement.