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E-mail Now Delivers Pink Slips Part II
Posted by Helen Shaw | CFO.com | US
September 1, 2006 11:07 AM ET

In response to the news that RadioShack fired about 400 employees by E-mail this week, most readers -- except one RadioShack employee that still has a job -- have expressed outrage.

Jay Leno joked about the news on his show last night, which underscores the extent of RadioShack's shockingly impersonal action. Here's Leno's joke verbatim: "RadioShack is laying off over 400 employees. You know how they notified them? Through E-mail. How cold is that. They were fired through E-mail. The sad part is, 300 of the employees will never know 'cause they have AOL."

Not only was the layoff by E-mail an employee relations action, but also, it's an action that is observed and judged by the public, i.e. consumers.

Some CFO.com readers sent messages to me personally and I'd like to share them, as they capture the general feelings of our audience.

•"They've shown the consumer their true colors. Perhaps, I need not shop there!"

•A laid-off WorldCom employee writes, "Even though they did not give me one red cent for severance after five years of service there, they did call me in to hand me the pink slip. Sending an email to tell someone he/she will no longer have a job is not acceptable."

•"That was the most spineless thing I have heard of in recent past. I love e-mail, but you don't use it to fire or manage folks in your charge. Downright crazy."

Comments (2)


Comments | Post a Comment
Interesting thing firing people!

Most companies have continual improvement programmes and I would guess firing 400 people is one at Radio Shack.

However, think about this:

In order to continually improve, you must induce employees to cause improvement, In order to induce empplyees to improve you must NOT fire them BECAUSE as soon as they understand the consequences of improvement - will any sane employee continue to support improvement? Or will he do his best to protect himself.

On the other hand in order to continually improve you must (as a manager) show bottom line results (CFOs want that). In order to show bottom line results you have to fire people BECAUSE human resources make up by far the biggest part of an organisation's fixed cost.

So, the continual improvement programme puts managers between a rock and a hard place - they must NOT fire people and at the same time the MUST fire people.

The fact that some manager took the cowardly way out and fired 400 people by email is simply a reflection that he understands the above dilemma perfectly (if only intuitively). He did not know how to explain the situation to his people.

CFOs out there - is it part of your job to find a way out of that dilemma? Because there is one!

Rudi
Posted by Rudi Burkhard | September 02, 2006 11:20am

RadioShack has exercised extremely poor corporate judgement with the decision to fire individuals through an Email. Regardless of the fact that employees knew that a reduction in force was imminent. This was not in the best interest of shareholders - the public out-cry could have only been negative with regard to the less than empathetic approach to the task.
Posted by GARY BINKOSKI | September 03, 2006 11:04pm

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