Tech Sector Faces Backlash Over Inhumane Layoffs: Experts Call for Respect and Dignity for Employees
In the wake of a series of cold and impersonal job cuts in the tech sector, industry experts are raising concerns and demanding that employees be treated with more respect and dignity. The trend of dismissing employees remotely, often through digital means, has become a disturbing norm with detrimental consequences.
One striking example of this troubling trend occurred in May last year when 700 Swedish fintech company Klarna employees received news of their layoffs through a pre-recorded voice message from the CEO. Similarly, Elon Musk sent a memo to thousands of Twitter staff in November, informing them that their notices would arrive via email.
According to Layoffs.fyi, an online tracker, tech firms worldwide have eliminated approximately 330,000 jobs since early 2022. Many organizations favor "disrupting" traditional employment processes by conducting dismissals remotely.
Emma Hughes, an associate professor of HR management at Leeds University Business School, believes that tech companies opt for these impersonal approaches because they are the quickest and easiest way to let go of many employees. It also allows them to maintain direct control over redundancy, minimizing resistance. However, Hughes questions whether the shift to online work during the Covid-19 pandemic led these companies to believe that a digital approach was acceptable.
Nevertheless, Hughes emphasizes that delivering such devastating news through digital methods, be it an email or a recorded message, is an impersonal and blunt way to communicate with employees. She argues employees deserve more respect, dignity, and meaningful consultation during challenging times.
Angie Kamath, dean of the NYU School of Professional Studies, describes the digital layoffs as "inhumane." She suggests that while the scale of these layoffs may not surprise, given the maturing nature of the tech industry, it highlights some flawed forecasting. Kamath points out that sectors like finance and manufacturing have long dealt with the need for corrections and cost reductions.
The consequences of these layoffs remain uncertain, but Hughes believes the impact could be significant. Notably, the concerns raised by influential figures like the UN's high commissioner for human rights, Volker Türk, regarding the redundancies at Twitter and the layoffs of the human rights and ethical AI teams will likely reverberate. Hughes predicts that remaining employees may experience a loss of trust, increased concerns about job security, and a potential decline in commitment, cooperation, and engagement, leading to higher staff turnover. Moreover, the reputation of these tech firms could be tarnished, affecting future recruitment efforts.
As the tech sector faces mounting criticism for its treatment of employees, calls for change grow louder. A more compassionate and ethical approach to layoffs is paramount to maintaining employee morale, trust, and long-term success within the industry.
