Ajit Karn
McDonald’s Corp. is the most recent company to request that employees work from home during redundancies, a practice that has been criticized by other companies’ employees and management experts.
According to a person familiar with the company’s plans, the fast-food chain instructed its corporate staff to work remotely from Monday to Wednesday in order to maintain confidentiality as it eliminated hundreds of positions. The decision was made out of respect for those affected, said the individual who requested anonymity to discuss confidential information.
This week, McDonald’s is communicating with all of its corporate employees, not just those being laid off, and the Chicago-based company is moving more individuals into new or higher positions than it is terminating, according to the source.
In November, Twitter Inc. also closed its offices prior to conducting mass redundancies under new CEO Elon Musk. And PepsiCo Inc. adopted a similar strategy in December, according to a Fox Business report.
Virtual redundancies had become standard procedure during pandemic lockdowns due to the abrupt and urgent need for businesses to downsize. But now that many businesses have returned to their offices, executives have the option of conducting redundancies in person or remotely.
Virtually delivering pink papers can result in severe retaliation. After the incident went viral on social media, Better Holdco Inc., an online mortgage lender that fired 900 employees over Zoom, was compelled to apologize publicly. Google employees have criticized the company’s recent mass layoffs and demanded, among other things, that future layoffs be conducted in person so that employees can bid farewell to coworkers.
Even though remote redundancies can be more effective and less uncomfortable for all parties involved, some experts believe it is still preferable to deliver bad news in person whenever possible.
Sandra Sucher, a professor of management practice at Harvard Business School who studies employer-employee trust, stated that in the past, when a company had a large-scale layoff, such as the closure of a facility, the managers would assemble everyone together and inform them simultaneously. Then, employees would meet with managers individually to digest the information and pose questions.
Some businesses may believe that executing a mass termination virtually is more efficient than going through this process, but Sucher argues that this is “kind of a false efficiency.” While the initial announcement can be made swiftly, there are numerous follow-up inquiries regarding timing, severance packages, logistics, and health benefits. “There are certain processes you do not want to complete quickly,” she said.
Also read: Australia Ban TikTok On Government Devices Due To Security Concerns
“These have always been very personal and difficult conversations,” Sucher said. “I’ve had to have them myself.” “However, it is a sign of human decency that we accept responsibility for the fact that we’ve just involuntarily terminated an employee, leaving them unable to support themselves and their families. This is the most consequential action a business can take.”
Ultimately, Sucher stated, “the privacy argument has some merit, but I do not believe it outweighs the need to communicate face-to-face.”
