After the Layoffs…

What next??!!
Presented by “GROUP 5”

G
R
O
U
P

5
 DELARK
 Old fashioned, patriarchal….led by founders son
 Turned public organization in 1988
 Salaries and benefits out of line, no lay-off policy

G  Harry Denton, CEO….different strategy

R  Transformed boring, outdated chain to fun, chic shopping for
O
U Midwest’s growing population
P  Revenue leap to $400 million, 20% surge in chain’s stock
price
5
 Strategy
 Refurbishing dowdy looking stores
and cutting overhead cost, to meet
remodeling cost
 Link selling
Action taken
 Cut employment by 20%, 3000
employees
 Layoff employees given 2 months
salary and 1 month outplacement
service

G
R
Effects
O  Survivors were angry
U
P  Morale issue, getting public
 Rumors of key people leaving
5
 Mistakes
Lone strategy, forgot to consult others!
Presumed CEO replacement would follow layoff, thus no
communication
Following partial advise of the local consultancy
Not taking help of head of HR

G
R
O
U
P

5
 General Issues in the Current situation

 Strategy decided by CEO alone

 Not communicating the mission and vision
 Considering Layoff as the first option
 Rate of layoff is high
G  Key employees leaving
R
O  Low employee morale
U
P

5
 HR Planning Issues

 No Layoff policy
 Communication by the HR about the layoff with the employees.
 Retaining morale of the employees.
 Job security for the survivors.
G
R
O
U
P

5
 What would you do?
 Apologize for the un-informed
action and backup with data
 Assure no layoffs further
 Communicate to employees the
Vision and Mission

G
R
O
U
P

5
G
R

THANKYOU
O
U
P