Article headquarters, Vancouver, BC
August was a dismal month for several, well known BC companies who cumulatively laid off over 600 staff. First it was Unbounce, a Vancouver-based tech company who shed 20% of its workforce - nearly 50 people. Shortly after, came trendy, direct-to-consumer furniture supplier Article who said goodby to 216 of their staff. Finally, Hootsuite, another tech firm specialising in social media engagement solutions, cut nearly a full third of its workforce - 350 people.
Layoffs have been a common story since the outbreak of the covid-19 pandemic, which saw a dramatic spike in companies - especially those in industries which relied upon physical customers - cutting staff in an effort to stay in business. At the beginning of the pandemic, from February to June 2020, 12.4% of Canadian paid workers to be laid off. This figure is 4 - 5x higher than in other periods of downturn per Canadian government stats. While the figures are no longer as dramatic two years later, the lingering pandemic, rising inflation, the war in Ukraine and threat of recession are adding additional pressure for many companies.
What seems to be unique about these recent layoffs is not the volume or sequence of the dismissals but rather the role that companies are playing in supporting their departing staff. While it was common for companies to provide generous severance packages and discreet job search support to outgoing staff, these recent layoffs show leaders and CEOs actively working to help folks land on their feet.
Unbounce’s CEO, Felicia Bochiccio was very active on LinkedIn, working to (successfully) place her talented staff into new roles. Bochiccio’s company put together a google doc with all active job seekers and Bochiccio made a point to respond to every comment on her LinkedIn posts regarding the layoffs.
Similarly, Article’s leadership team put together a comprehensive google doc of all outgoing staff in an effort to help soften the transition. CEO Aamir Baig published a public business update showing both empathy and action by extending laid off employee’s benefits, allowing them to keep their equipment, supporting their job searches and offering to speak personally to each outgoing individual.
In a fine example from our industry, BCAG’s own Alexandra Plante recently stepped up to offer her network, support and guidance to recently laid off and furloughed employees.
While layoffs are common in most business contexts, they are not essential when times are tough and exemplary leaders often have many tools in their kit to avoid such a dramatic approach. However, like other periods of significant disruption, letting go of staff may be the only available option to ensure business sustainability. When unavoidable, a new model of empathetic leadership, coupled with powerful engagement tools can ease the burden and support laid off workers in the process. While a seemingly simple approach, some leaders don’t always get it right…
We are always looking for inspiring stories from our member community. If you would like to share an example of exemplary leadership within the BC Apparel and Gear community, please send us a note.