The Toughest News Releases Kevin M Brett J

The Toughest News Releases Kevin M. Brett J 410 May 9, 2013

Why Layoffs? • Insufficient revenue to meet payroll • Need to restructure company – Eliminate underperforming businesses • Need to eliminate redundancies after acquisitions or mergers • Survival

Typical Severance Package � Three Weeks Pay, Plus One Full-Week for Every Full Year Worked, Capped at 23 Weeks � Outplacement Assistance by Lee Hecht Harrison � COBRA continuation for up to 18 months � Company takes one-time operating expense GAAP charge to earnings for severance � Layoff Letter

Key Audiences (layoff releases) Survivors Impacted employees Customers, Suppliers Media, especially local media Financial and market analysts

Amazon/RIM Merger Redundancies � 88, 400 Employees � 16, 500 Employees

Nike/UA Redundancies � 44, 000 Employees � 5, 400 Employees

JWN/EL Redundancies � 61, 500 Employees � 38, 500 Employees

SBUX/GMCR Redundancies � 160, 000 Employees � 5, 800 Employees

Writing a Layoffs Release

Layoff Release Check List �Reason for the 10 percent reduction in force �Number of Employees Impacted and Where �Expression of Compassion by CEO �Reaffirmation of business strategy by CEO �Reassurance to Surviving Employees/Customers/Suppliers/Distributors �Size of One-Time Charge: 10 percent of the last quarter SG&A expense for both companies. �NO APOLOGIES