Steve Jobs Email Blast from the Past

We get a window into executive decision making with Internal Tech Emails. This 2005 thread starts with Google Co-Founder Sergey Brin telling his team that Steve Jobs called, angry about Google “recruiting from the safari team.” Without ever hitting the caps key, Brin described Jobs as “agitated” about at least one potential hire away from Apple. In addition to losing staff, Jobs was concerned about Google developing a search engine to compete with Safari, but Brin assured Jobs that this wasn’t in the works.

The email thread includes other Google execs jumping in to explain that they were, in fact, trying to recruit a high-profile employee from the search team—and that the hire might bring additional employees as well. At some point, an HR leader, Arnnon Geshuri, weighs in: “We are careful to adhere to non-compete agreements if we have established these with any company.  However, it is the staffing organization's practice to aggressively pursue leads that come from our employees and bring the best talent onboard.”

But, as the conversation continued (and after few more calls from Jobs), we see the team shift. They agree not to pursue more candidates without pre-approval from Apple if the prized employee came on board.

Southwest Communications

This week’s debacle will make a great case study. As other airlines recovered from the storms, Southwest lagged. Here are a few communications for students to analyze and compare. For an assignment, students could act as consultants advising the company on their messaging or assessing the ethics and character issues demonstrated throughout this time.

CEO Bob Jordan’s video message. Students have a lot to analyze in this example: the apology, explanation of what went wrong, audience perspective, communication objectives, plans for the future, delivery style, etc. The persuasive video raises questions of accountability, compassion, humility, vulnerability, and other character dimensions. Students can identify which Jordan demonstrates and which are lacking.

Southwest webpage. A link to this page is prominent on the Southwest homepage. Customer can find “Travel disruption information,” including how to request a refund and locate baggage. Students can analyze how well the site is organized and how easily users can find what they need.

Employee interview on Democracy Now! What are the character and ethical issues associated with an employee defending staff yet speaking out against the company? The interviewed employee blames Southwest’s technology and says union employees have been asking for changes for years. This raises integrity issues for airline management.

U.S. Secretary of Transportation Pete Buttigieg interview. Buttigieg gave several interviews distinguishing Southwest’s performance from other airlines that struggled but recovered. He defended the Department of Transportation’s recent push for airlines to do right by customers. Critics say the secretary is using the moment for political gain.

Justin Bieber and H&M Dispute

Justin Bieber claimed—on Instagram—that H&M created and was selling products without his approval. In addition to the post shown here, he wrote, “The H&M merch they made of me is trash and I didn’t approve it,” and “Don’t buy it.”

H&M pulled the products and explained the decision in a statement: “H&M has followed all proper approval procedures, as we have done in this case, but out of respect for the collaboration and Justin Bieber, we have removed the garments from selling.”

This story raises questions about integrity: what exactly was the process, and was it followed as agreed? I also question Bieber’s medium choice. Why did he make such a public statement? Did he already reach out to H&M privately and not get the response he wanted? We might question both parties’ accountability: how did they agree to resolve differences?

Misleading College Financial Aid Letters

A lively class discussion is almost guaranteed if you introduce the topic of college financial aid letters. A U.S. Government Accountability Office (GAO) report found that 91% of colleges either underestimate net prices or fail to include the net price entirely.

In their offer letters, the GAO recommends that colleges subtract only grants and scholarships that students will receive but include ancillary costs like “tuition, fees, housing and meals, books, and living expenses.” Any parent with a college-age student—or any student paying their own way—know that these expenses add up.

The GAO report is also a good example for students to analyze. It follows some principles we teach in business communication classes: a clear structure and detailed table of contents (with hyperlinks); a mix of text, tables, and other graphics (with callouts); and an executive summary. Some design features are a bit curious, for example, left-column headings and squiggly lines around tables.

Overall, best practices are clear, and I hope that colleges take the GAO’s advice. The news raises issues of integrity and accountability. I find it interesting that the GAO was renamed the Government Accountability Office from the Government Accounting Office in 2004. The name does seem to better fit the organization’s mission.

FTX Founder Plays the Innocent

Sam Bankman-Fried’s interview about the collapse of FTX tells us a lot about him, about investors, and about regulation. Bankman-Fried chose to tell his story to New York Times columnist Andrew Ross Sorkin via video from the Bahamas. (See transcript.) Starting with a discussion of the many people were “hurt” by the business failing, Sorkin tried to hold Bankman-Fried responsible for billions of losses. He offers two divergent views of what happened to the company: that Bankman-Fried is a “young man who made series of terrible, terrible, very bad decisions,” or that he “committed a massive fraud—that this is a ponzi scheme, a manipulation of the system.”

Business communication students might see this as a false dichotomy. Bankman-Fried claimed that his goal was to “do right” by people and that he made mistakes. He said, “Look, I screwed up. I was C.E.O. I was the C.E.O. of FTX. And I say this again and again that it means I had a responsibility, and I was responsible ultimately for us doing the right things and didn’t. We messed up big.” But he denied setting out to commit fraud. Ross read a letter from someone who says he lost $2 million—his life savings—and that Bankman-Fried used his money to fund his hedge fund. Maybe both narratives are true, and Bankman-Fried isn’t seeing or admitting it.

Students might benefit from a class discussion or assignment about the investor perspective. Not to the blame the victim, but what accountability do investors have in this situation? What were they hoping to achieve compared to other investors—or compared to the general public who do not have $2 million to invest? Depending on how far you want to take this story, a discussion about regulation is certainly relevant, and students, particularly if they or they families have benefitted from crypto investments, might have a lot to say about it.

Otherwise, the video serves as a good example to analyze for delivery, persuasion, character, and interview skills. How is Bankman-Fried as a presenter? How does he balance logical arguments, emotional appeals, and credibility? What character dimensions are at play? Was it the best decision, going against his lawyers’ advice, to do this interview—and from his penthouse in the Bahamas? How well did he respond to questions? Overall, are students more—or less—favorable about Bankman-Fried after watching the interview?

Disney Comms About Ousted CEO

Students might enjoy comparing internal and external messages from Disney about Bob Iger’s return just 11 months after his retirement. Lagging investor confidence and profits ended the current CEO’s short tenure in the position, which the board skirts in the press release.

As we might expect, the public statement includes typical quotes from the incoming leader (Iger) and board chair. Missing are comments from the outgoing CEO, Bob Chapek, although the chair thanks him “for his service to Disney over his long career, including navigating the company through the unprecedented challenges of the pandemic.” Iger is positioned as “uniquely situated to lead the Company through this pivotal period.” Here’s Iger’s quote for the release:

“I am extremely optimistic for the future of this great company and thrilled to be asked by the Board to return as its CEO,” Mr. Iger said. “Disney and its incomparable brands and franchises hold a special place in the hearts of so many people around the globe—most especially in the hearts of our employees, whose dedication to this company and its mission is an inspiration. I am deeply honored to be asked to again lead this remarkable team, with a clear mission focused on creative excellence to inspire generations through unrivaled, bold storytelling.”

In an email to employees, below, Iger mentions “gratitude and humility” and focuses on his audience—”cast members” who have probably struggled in many ways during the past couple of years. He says nothing about Chapek, but really, what is there to say? It might just sound false.


Dear Fellow Employees and Cast Members,

It is with an incredible sense of gratitude and humility—and, I must admit, a bit of amazement—that I write to you this evening with the news that I am returning to The Walt Disney Company as Chief Executive Officer.

When I look at the creative success of our teams across our Studios, Disney General Entertainment, ESPN and International, the rapid growth of our streaming services, the phenomenal reimagining and rebound of our Parks, the continued great work of ABC News, and so many other achievements across our businesses, I am in awe of your accomplishments and I am excited to embark with you on many new endeavors.

I know this company has asked so much of you during the past three years, and these times certainly remain quite challenging, but as you have heard me say before, I am an optimist, and if I learned one thing from my years at Disney, it is that even in the face of uncertainty—perhaps especially in the face of uncertainty—our employees and Cast Members achieve the impossible.

You will be hearing more from me and your leaders tomorrow and in the weeks ahead. In the meantime, allow me to express my deep gratitude for all that you do. Disney holds a special place in the hearts of people around the globe thanks to you, and your dedication to this company and its mission to bring joy to people through great storytelling is an inspiration to me every single day.

Bob Iger

Image source.

Public Talk of Layoffs

I remember when people where ashamed of being laid off. Old movies show men leaving for “work” months after they no longer had a job.

Today, people find community in discussing their fate, and they use their favorite platform—sometimes their former employer—to share their stories. Partly, the shame is lifted because of the numbers: 11,000 at Meta; 10,000 at Amazon; 3,700 at Twitter; 950 at Salesforce; and many others. In a colorful, but mostly unreadable chart, TrueUp logged 192,997 so far in 2022. (Maybe the logos could be scalable?)

The unfortunately named Blind app connects employees in several industries, particularly tech (95% of Twitter employees signed up). Students can review comments for an inside scoop just as they do on Glassdoor.

I feel encouraged by the public postings. In addition to the obvious compassion and vulnerability, the stories—good and bad about the layoff process and communication—keeps employers on their toes. Also, people are finding new jobs, and this will get easier as the market, once again, opens up.

Meta's Well-Timed Layoff Message

How clever for Meta to announce 11,000 layoffs as we watch the news for election results. Still, the news ranked highly, with a big headline on the WSJ home page.

Unlike Elon Musk’s curt email to Twitter employees last week, Mark Zuckerberg’s note is longer and posted publicly, which is smart since it would likely hit the press anyway. He follows business communication guidelines by placing the main point up front, and he demonstrates accountability and compassion in the introduction:

I want to take accountability for these decisions and for how we got here. I know this is tough for everyone, and I’m especially sorry to those impacted.

His explanation of what went wrong also demonstrates accountability—and humility: “I got this wrong, and I take responsibility for that.”

Zuckerberg describes severance and other benefits in bullets, and he expresses optimism in the future. Employees will question whether they’re affected, but I’m not sure he can say anything differently in the message because cuts are across the board. Still, people might appreciate a bit more information about how decisions were made.

People must be on edge. Zuckerberg wrote, “Everyone will get an email soon letting you know what this layoff means for you.” How soon? He also offers the chance to “speak with someone to get their questions answered and join information sessions.” The goal seems to be communication by email and mass meetings. In-person meetings are best for delivering bad news, but given remote work and scale, this method is probably the only practical way to go

Twitter Layoff Messages

Perhaps the best example of a bad-news message is a layoff memo (below), and Elon Musk’s Twitter email doesn’t disappoint. Just days after the purchase went through and after a deafening silence, the new CEO sent a short message confirming what employees expected.

The email is classic Musk: direct and decisive, without a lot of compassion. He makes the news extra painful by expressing his distrust: cutting people off from offices and systems and reminding people not to share confidential information (which at least one person did by sharing the internal email).

Layoff messages are typically softer, with more specific reasons for the decision, a rationale for who goes and who stays, more gratitude to those leaving, more information about what people can expect, and more optimism about the future of the company. They are also a chance for leaders to demonstrate their own humility and vulnerability. But that’s not Elon Musk. (That describes Brian Chesky, whose Airbnb layoff message—posted publicly—is still one of my favorites.)

The actual layoffs the next day didn’t go much better. “Confusion” prevailed as 50% were laid off, some losing access in the middle of meetings. Now Musk is left with what he called a “massive drop in revenue” and class-action lawsuits from employees.



Team,

In an effort to place Twitter on a healthy path, we will go through the difficult process of reducing our global workforce on Friday. We recognize that this will impact a number of individuals who have made valuable contributions to Twitter, but this action is unfortunately necessary to ensure the company's success moving forward.

Given the nature of our distributed workforce and our desire to inform impacted individuals as quickly as possible, communications for this process will take place via email. By 9AM PST on Friday Nov. 4th, everyone will receive an individual email with the subject line: Your Role at Twitter. Please check your email, including your spam folder.

If your employment is not impacted, you will receive a notification via your Twitter email. 

If your employment is impacted, you will receive a notification with next steps via your personal email.

If you do not receive an email from twitter-hr@ by 5PM PST on Friday Nov. 4th, please email xxxxxxxx.

To help ensure the safety of each employee as well as Twitter systems and customer data, our offices will be temporarily closed and all badge access will be suspended. If you are in an office or on your way to an office, please return home.

We acknowledge this is an incredibly challenging experience to go through, whether or not you are impacted. Thank you for continuing to adhere to Twitter policies that prohibit you from discussing confidential company information on social media, with the press or elsewhere.

We are grateful for your contributions to Twitter and for your patience as we move through this process.

Thank you.

Image source.

Research About "Low-Response" People

Research about persuading people to pay NYC parking tickets has implications for business communicators—and raises questions of character. The study, published in American Economic Journal: Economic Policy, found that reminder letters get more people to pay fines, but this approach doesn’t work for everyone.

People who respond least to the “nudges,” including notices about greater fines, happen to be those least likely to pay in the first place. Referred to as “low-response” types, these folks need sterner warnings. As one author says, “It’s only when they get this legal-looking letter that says, ‘We are in default judgment against you; you may get towed.’” Most interesting, people in the “low-response” groups tend to be from historically “disadvantaged populations—lower income, less education, and higher proportions of Black or other racial groups.”

The authors acknowledge that their recommendations ”would not be based on individual characteristics (e.g., income, race, neighborhood) but only on past behavior–while statistically helping traditionally underserved populations to avoid penalties with a nonintrusive nudge. We further note that, in proposing this policy, we are not assuming that the low baseline response rates of the LRs are suboptimal. Rather, we are pointing out a lower-cost policy that could induce more timely payments from the LRs without imposing larger penalties on them.”

Still, this study raises questions about character, for example, compassion, integrity, and accountability. Am I the only one cringing at the term “low-response type” and use of “LRs”? Is it right to threaten one group but not another, even if it’s based on past behavior? True, people should pay fines, but we have deeper societal issues and inequities to consider. How do people in these groups view rules and law enforcement? Are people in lower-income neighborhoods or with cars in greater disrepair more likely to get tickets in the first place?

If, as the authors say, their proposed policy is helpful to avoid “imposing larger penalties,” why not simply eliminate fines that some people can’t afford to pay? Our local library has stopped charging late fees so they don’t discourage reading and cause a disparate impact. The authors do propose eliminating later, greater fines that have little impact and most affect people in historically disadvantaged populations. Theoretically, data can also be used for a sliding fee scale according to income level—or perhaps the value of one’s car.

The simpler takeaway for business communication students is the relevance of knowing your audience. As study authors say, NYC already has the data and can customize approaches. We do teach analyzing an audience and tailoring a message. But students may discuss the ethics of using data and taking different approaches in these types of situations.

Surgeon General's Report Example

The U.S. surgeon general’s report, Framework for Workplace Mental Health & Well-Being, offers several discussion points for business communication students. The report itself is unusual, the first time a surgeon general has weighed in on what the media is framing as “toxic workplaces.” Coupled with over-reporting about “quiet quitting,” the report highlights problems at work.

An obvious discussion with students is about the report format and organization. It serves as a good example of a primarily text-based report, with few graphics except for the visual summary, which serves as an organizational cue throughout the 46 pages. We see some data and plenty of footnotes but no charts.

The report content—and how the U.S. surgeon general presented the findings on PBS NewsHour, for example—is worth exploring. First, of course, we want our workplaces to be more positive places. The recommendations presented are sound and perhaps obvious; in addition, as Vivek Murthy says, organizations have better outcomes when they are healthier places to work.

Second, what strikes me is the lack of accountability for organizational leaders and the challenges they face. Not once in the PBS interview does Murthy mention “leaders” or “managers”—actual people responsible for putting his recommendations in place. Murthy’s opening letter in the report is personal—about his immigrant parents—but his content summary is not. He blames the pandemic and uses impersonal subjects, for example, “organizations,” “we,” and “workplaces.” In the accompanying deck, titled “Reflection Questions,” “I” is never used, and “leaders” is used as the subject only once in the 20 questions; “we,” “workplace,” and “workers” prevail.

In the report, leaders, managers, and supervisors are called to action, sometimes in vague ways, for example, having the “opportunity” to do better. But the HR department gets no mention at all. A Wall Street Journal article summarizes, “The surgeon general’s guidance on the role of the workplace in well-being comes as many workers report work stress and difficulty concentrating.” I wonder how “workplaces” will respond.

Comms We Regret

Two news stories remind us that what we say may come back to bite us. Two Los Angeles officials resigned from their positions following crass and racist comments by City Council president, Nury Martinez. (Details here, if you have the stomach to read.) Other resignations may follow.

In another situation, Ye (Kanye West) faced Instagram and Twitter restrictions following his anti-Semitic comment. He wrote, “I’m a bit sleepy tonight but when I wake up I’m going def con 3 on Jewish people. . . ” In response, Adidas is reviewing its sponsorship agreement.

In the LA situation, someone illegally recorded and posted a conversation on Reddit. In the second, West made his own comments public, but he admits being tired. In both cases, the comments were offensive and not a good choice.

Let’s remind students that they are responsible for their communications and may not know how what they say and write will be publicized.

Communications About Fast Company Breach

Fast Company is suffering embarrassment because of a data breach during which hackers sent racist messages through Apple News on iPhones. The offensive comments reflect poorly on Apple as well, which a Washington Post article describes as an otherwise “walled garden.”

In addition to posting the message shown here on its website homepage, Fast Company sent this message by email:

Fast Company’s Apple News account was hacked on Tuesday evening. Two obscene and racist push notifications were sent about a minute apart. The messages are vile and are not in line with the content of Fast Company. We are investigating the situation and have suspended the feed and shut down FastCompany.com until we are certain the situation has been resolved.”

A similar white-text-on-black-background message plasters Inc.’s home page: “As a result of the FastCompany.com breach, Mansueto Ventures (which also owns Inc.) is temporarily shutting down Inc.com out of an abundance of caution while the investigation is underway.”

Without further comment to news organizations, Apple posted this tweet: “An incredibly offensive alert was sent by Fast Company, which has been hacked. Apple News has disabled their channel.” Apple is doing its best to stay out of the fray, letting Fast Company take the blame.

AT&T Missing "You"

AT&T customer communication about Hurricane Ian is missing the customer—particularly “you.” Students could rewrite these bad-news (and persuasive) messages to address customers directly. The “you attitude,” or focus on the audience, would convey more empathy, give residents more confidence in the company, and make reading easier.

AT&T’s Hurricane Ian webpage is odd. The beginning doesn’t have a defined audience, so it’s likely written for anyone who might be interested in the company’s work to restore power. Most sentences start with “we,” “our,” or “FirstNet.” Company leaders also seem proud of their vehicles: four photos in the middle of the page include a link to “download” each.

The next section, with black text on a blue background, is titled, “Supporting Our Customers.” Updates include fees waived and other customer benefits. But students can easily revise paragraphs like this one to make them more audience-focused:

As Hurricane Ian moves through additional states, we are assisting our wireless customers who may be impacted by the storm. To do this, we’re waiving talk, text and data overage charges for AT&T Postpaid & PREPAID customers with billing addresses in zip codes* across areas in Georgia and South Carolina from September 29, 2022 through October 8, 2022.

Overreliance on Annual Performance Reviews

Before and during the pandemic, several companies stopped doing annual employee reviews, but many have brought back the practice. Reports show that slowed hiring and increased layoffs are causing more pressure for employees to perform; managers want more ways to track and document performance. Without reviews, managers could appear to have lax standards, failing to hold employees accountable for outcomes.

The annual documentation, meeting, and goal-setting are not the real problems. Managers are uncomfortable giving feedback and rely only on once-a-year conversations. Employees need to know, ongoing, how their performance measures up to expectations so they have a chance to improve. When done well, annual reviews are a summary of what employees already know about where they stand. Ongoing feedback encourages self-accountability, holding oneself accountable without relying on external approval.

A Bloomberg Businessweek article (with simplistic, nonparallel charts) offers alternatives to the annual review, which could supplement the annual meeting. The recommendations are in line with good business communication: check in regularly, encourage the employee to reflect, focus on the future instead of the past, collect multiple opinions, etc.

Victoria's Secret Admits "Toxic Culture"

A song has challenged Victoria’s Secret in a way I haven’t seen since “United Breaks Guitars.” Already struggling because of changing customer preferences, a Hulu documentary, and leadership ties to Jeffrey Epstein, the brand responded to try to repair its reputation.

Jax wrote the song for the girl she babysits, and now it’s 50 on Billboard’s Hot 100 songs. Viewed more than 30 million times, “Victoria’s Secret” speaks to young people about unrealistic body images. Jax demonstrates vulnerability by talking about her own struggles, including how she “stopped eating.” She wrote lyrics the company couldn’t ignore: “I know Victoria's secret / And girl, you wouldn't believe / She's an old man who lives in Ohio / Making money off of girls like me.”

The company responded with two statements. The first, an Instagram post, is a clever handwritten note from the CEO, complimenting the song and promising to do better. The second, below, is a spokesperson’s statement, which illustrates a classic crisis communication strategy: distancing yourself from the issue. Referring to the past, the writer remind us how far Victoria’s Secret has come. In my view, the company demonstrates some accountability but could offer more compassion.

For her part, Jax demonstrates integrity in her video response. She focuses on her intent, which wasn’t to “take down a brand,” and she invites others to share their stories.

We’ll see how Victoria’s Secret fares in the end. Some believe the brand hasn’t changed enough or took too long to be more inclusive of different body types. Regardless, the situation and response are good crisis communication and character examples.


At Victoria's Secret, we make no excuses for the past. We know the old VS lost touch with many people, projected a damaging standard of beauty, and perpetuated a toxic culture.

Today, we are proud to be a different company, with a new leadership team and mission to welcome, celebrate, and champion all women. We have made much progress, but recognize this transformation is a journey, and our work continues to become the Victoria’s Secret our customers and associates deserve — where everyone feels seen, respected, and valued.

We’re always open to engage with those looking to share feedback as we continue our transformation.



Uber's Response to Hack

What sounds like a major security breach is getting minimal response from Uber so far. A hacker, possibly 18 years old, apparently posed as a colleague to get IT access through an employee. An embarrassment to the company, the breach could include “full access to the cloud-based systems where Uber stores sensitive customer and financial data.” But Uber communications are trying to minimize the impact.

Three days after the breach, the only message I can find is a “Security Update,” copied below, on Uber’s Newsroom page. Company leaders are likely scrambling to lock down and protect information, but more communication is important. Criticism is harsh because of how easily the hacker appears to have duped an employee through social engineering and because of the unfortunate timing: Uber’s former chief security officer is currently on trial for paying hackers $100,000 to avoid disclosing a breach back in 2016.

The communication and situation are challenging, but people are watching and waiting, as we see in these tweets. This situation raises issues of several character dimensions, for example, accountability, humility, integrity, and courage. With more transparency, the company might be less vulnerable now, not more, as the leaders might fear.


September 16, 10:30am PT

While our investigation and response efforts are ongoing, here is a further update on yesterday’s incident:

  • We have no evidence that the incident involved access to sensitive user data (like trip history).

  • All of our services including Uber, Uber Eats, Uber Freight, and the Uber Driver app are operational.

  • As we shared yesterday, we have notified law enforcement.

  • Internal software tools that we took down as a precaution yesterday are coming back online this morning.

September 15, 6:25pm PT

We are currently responding to a cybersecurity incident. We are in touch with law enforcement and will post additional updates here as they become available.

U.S. DOT Airline Dashboard

The U.S. Department of Transportation (DOT) created what it calls a “dashboard” for passengers to know what to expect when their flight is delayed or cancelled. This work results from ongoing debate about airlines’ responsibility, particularly given the many issues travelers have experienced since the pandemic. Transportation Secretary Pete Buttigieg has pushed the airlines to offer at least free meals for 3-hour or longer delays and free hotel stays when passengers need to wait at an airport.

Although some airlines say they already offered these accommodations, DOT Deputy Secretary Polly Trottenberg said this is about enforcement: “Now that it’s in the customer service plans, it’s not something in discretion. It’s something we can enforce. And I think this dashboard is really going to kind of raise the state-of-the-art for consumers.”

As a visual, the dashboard works well. Looking across the rows, we see clearly what to expect from each of the airlines. Categorizing the actions by cancellations (shown here) and delays makes sense from the passenger’s perspective. However, the graphic is skewed right on the page because of the left-side column.

In addition, when I hear “dashboard,” I think of a more complex, interactive spreadsheet. The only functionality seems kind-of silly. The dropdown menu at top doesn’t add value because we can just as easily scan across to see what any airline provides. Also, I’m not sure why anyone would want the ability to “keep only” or “exclude” specific items—or to see repetitive text when they mouseover the markings. Finally, I chose “view data” and got the following in a pop-up window, which communicates nothing relevant.

I would call the visual a table, matrix, or grid. But I don’t want to disregard the good news: airlines are communicating what customers can expect, can be held accountable and, in some cases, are providing better service.

Calm App Layoff Email

Even meditation apps get bad news. Although the Calm app grew quickly during the COVID lockdowns, the company is now laying off 90 of its 400 employees—more than 20%.

I can’t find the full email online, but the Wall Street Journal posted these quotes:

Regrettably, today we are reducing our overall workforce by 20%. While some of you will be impacted, all of you will be affected. I can assure you that this was not an easy decision, but it is especially difficult for a company like ours whose mission is focused on workplace mental health and wellness.

“We did not come to this decision lightly, but are confident that these changes will help us prioritize the future, focus on growth and become a more efficient organization.”

The article also describe what’s missing:

Mr. Ko’s memo didn’t elaborate on the reasons for the layoffs but promised employees “a more in-depth discussion on the future of the business” at an all-hands meeting scheduled for Friday. A Calm spokeswoman declined to make Mr. Ko available for an interview.

Typically, layoff memos explain reasons, which we know helps employees understand and accept bad news, as I describe in Chapter 8 of Business Communication and Character. More transparency and accountability might be useful.

Maybe Ko doesn’t want the reasons publicized, knowing that the email would be circulated. I also wonder whether the reasons are dire, and despite having a $2billion valuation, the company doesn’t yet have a solid plan for regrowth.


Cracker Barrel’s Minimal Response to Burger Criticism

Cracker Barrel added the plant-based Impossible Burger to its menu and faced more backlash than expected. An executive explained the change:

"Our new breakfast menu innovations provide a personalized experience with delicious breakfast choices to satisfy every taste bud—whether guests are nostalgic for homestyle food, hungry for a nutritious plant-based option or have a craving for a sweet treat. At morning, noon or night, we want guests to enjoy craveable breakfast favorites at a compelling value.”

But many customers responded negatively:

  • "Don't ever try to push that crap in my direction. Stick to the basics that made your franchise a success,"

  • "Are you kidding me? Who do you think your customer base is? I still order the double meat breakfast, and it's not even on the menu anymore."

  • "You just lost your customer base. Congratulations on being woke and going broke..."

I don’t see much in response from Cracker Barrel, except the picture above on Twitter. A company spokesperson did release this statement to NBC News:

"We appreciate the love our fans have for our all-day breakfast menu. At Cracker Barrel, we’re always exploring opportunities to expand how our guests experience breakfast and provide choices to satisfy every taste bud—whether people want to stick with traditional favorites like bacon and sausage or are hungry for a new, nutritious plant-based option like Impossible Sausage."

Maybe the company gave fuller responses on other social sites, or leaders may have decided to stay out of the fray and let people decide what to order. They did enough testing—in 50 restaurants—to know the market. With the hand-shaking image, they accept responsibility and invite people to just get along. This could be an example of a minority group of outliers making noise, but ultimately, going back to their favorite restaurant as always.