This morning brought news of a layoff of 500 at Hawker Beechcraft, even though the company has has backlog of more than $7 billion. It’s a necessary, strategic adjustment, and for some employees, it’s going to hurt like hell. Kudos to CEO Jim Schuster for clearly and honestly telling the company’s story.
The company is preparing for a serious economic storm. According to a letter to employees written by Schuster, quoted in an article by Molly McMillin in the Wichita Eagle, it’s time to act on “long overdue talent upgrade actions – we have no room for underachievers, particularly in these difficult times.” HBC will also defer capital spending, build cash reserves, reduce inventory and scale back forecasts.
Shel Holtz offers nine tips for handling job layoffs on his blog. It’s the job every PR professional dreads. But one of the themes of effective public relations practice is to focus on long-term success, and communicating bad news is part of the job. It’s no time for a pity party; the focus should be on the good of the enterprise, says Holtz.
It’s easy to take good times for granted, in our lives or in business. Whether it’s stocks or real estate values, we quietly accept prosperity, but become outraged when the economy tanks. So take note: the pendulum will swing both ways.
In a letter written by Schuster, quoted in the Wichita Eagle, “Never again are we likely to face circumstances quite like those we face today. Never again are we likely to have the platform on which to drive change and build value.
“I have always believed that great companies come to life when times are most challenging – ladies and gentlemen, you are the team, and this is the time.”
Good work by the HBC senior management and communication team. While there’s nothing wrong with hoping for the best, it’s the company’s obligation to prepare for the worst.
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