In the middle of an otherwise uneventful day, his phone buzzed. On the other side was his boss who told him that the company was not doing too well. He was then asked to go through a list prepared by the human resources (HR) department and lay off half of his 200-member team. He had an hour's time.
“It all happened so suddenly,” says the middle-level manager who works at an e-commerce firm and does not wish to be named.
As those laid off received the news, the reactions were disparate. Some of his former colleagues sent him pictures of their family members and asked, “How do I feed them?” Others added him to a WhatsApp group where every notification meant more abuse for him.
"I couldn't sleep [properly] for a month," said the executive, adding that he kept asking himself if he could have done anything differently. That’s a question many team leaders and HR executives across the Indian business sphere found themselves asking.
With investment taps turning dry and the global economy slowing, many companies in India have laid off people or declared their plans to do so. In all, 102 Indian start-ups have sacked some 27,100 people since the onset of the funding winter in 2022, with 9,781 of the people forced to look for work just this year, according to a report by tech media platform Inc42.
“Letting go of team members is never an easy decision,” says Varun Tandon, director-HR at Bengaluru-headquartered Dunzo. The quick commerce start-up had let go of 300 employees, or 30 per cent of its workforce, this year, according to media reports.
Tandon says that “while these decisions are sometimes unavoidable, our approach has always been to handle the process with empathy and humanity towards our team members”. That has meant talking early on in the day with the affected employees, having a counselling team ready 24x7, and providing support and guidance for a further three months.
“There are also first-time managers who need additional guidance and support,” says Tandon, who works out of Dunzo’s Delhi office. He speaks of instances where the managers have cried after delivering such news.
Where the mind is with fear
Mumbai-based Riddhi Gandhi, a therapist at mental health e-counselling platform The Mood Space, says those who had to fire someone have narrated feeling a sense of helplessness and stress in sessions with her. Some have even experienced physical difficulties induced by high levels of anxiety and trouble sleeping. Managers also wondered if their communication was enough and whether they did everything in their power to help people cope.
The focus, understandably, is on the employee getting fired. “What remains behind the curtain, though, is the emotional burden of terminating someone and the internal conflict it leads to,” says Gandhi. There are times when the managers have shared personal bonds or friendships with the employee, which further amplifies their distress, she adds.
Amid all this is the challenge of keeping the pace of work unaffected, say HR executives. The morale of those not fired is also at a low, and many are wracked with survivor’s guilt, feeling a strong sense of empathy for their former colleagues, they say.
Others wonder if they will be asked to leave next. The middle-level manager mentioned earlier said he had plans to buy a car and so he kept calling his own reporting manager to confirm that his name wouldn’t figure on the next list, if there was to be one.
At a time of such uncertainty, it becomes “crucial for the management to recognise the contributions of remaining employees and provide them with opportunities for growth and development,” says Girish Rowjee, co-founder and chief executive officer (CEO) of Bengaluru-based HR-tech firm greytHR. “While layoffs may provide a quick fix to financial challenges, it is important to consider the potential negative impact on the company's reputation and the well-being of its employees,” he says.
Some suggest cutting salaries or other expenses as alternatives to sackings. But not everyone feels that layoffs can be necessarily prevented.
“I used to be on the board of a start-up that reduced salaries across the board due to the poor economy,” venture investor Ritesh Banglani wrote on Twitter. “Everyone got a 20 per cent salary cut, and the founders/CXOs took a 40 per cent cut. The founders expected this to bring people together — one for all and all for one.”
Instead, Banglani tweeted, people started giving reasons why they should be spared from the salary cut, and “everyone’s résumé was out in the market the very next day… Internal competition and politics intensified”.
Communication is the key While everyone agrees that layoffs are traumatic for everyone involved, are managers equipped to deal with the feelings that it elicits?
"In most cases, they are not," says Anshuman Das, co-founder and CEO at talent solutions provider Careernet and executive search firm LONGHOUSE Consulting. "This is an exceptional event and most organisations do not witness it regularly," he says.
Moreover, managers are not a monolithic group, and individuals may have varying emotional responses based on their personality and experience, says Bengaluru-based Das.
"These emotions can be complex and conflicting, making it crucial for managers to seek support, reflect on their decisions, and learn from the experience to ensure fair and compassionate handling of such situations in the future," he adds.
In the end, what helps those being laid off may also help managers process these difficult emotions.
Clear communication, in general, and a well thought out exit meeting that tells people what they lacked and what they can focus on next is important for these reasons, say HR experts.
This, though, hasn't happened at some firms that shed a sizable chunk of their workforce. That's because in the quest to over-hire people, they forgot to hire enough HR professionals, says Kabir Nazir, who was a hiring manager in his last stint.
Nazir, who is currently working remotely out of Dharamshala, Himachal Pradesh, says when he was let go in an earlier job, it was very chaotic. So, when he was made responsible for hiring (and firing) people at another firm, he held detailed exit interviews to tell those affected the rationale behind the move and then shared resources and actionable advice on what they could do next. "Most of them get in touch with me, sharing about the new job they had found".
Tandon from Dunzo says acknowledging your own emotions and finding support systems within and outside the organisation is essential.
"What I have personally found to be helpful is spending time with family and friends, who can get your mind off work. Even pets can be a great source of comfort,” he says. “These are tough decisions and whether we say it aloud or not, we are impacted as well. It’s important to find a way to process our own feelings."
How managers can cope
* Organisations can provide training and resources to managers on effective communication, conflict resolution, and emotional well-being
* Offering opportunities to managers to discuss their concerns, seek guidance, and share experiences with other managers can be beneficial
* It is crucial to create a supportive environment that acknowledges the challenges managers face and encourages them to navigate these situations with empathy and professionalism. These may include giving as much notice as possible to the employees who are to be laid off, offering a decent severance package, helping employees find new job opportunities or providing job search resources
* The manager can also spend some time reflecting on the situation at hand to understand how much of this is their personal responsibility and focusing on that which is in their control