How Will This Affect Me?

Let me now shift to what’s going to happen over the next 2 weeks and how this will affect you. I am asking each department head to create a headcount plan for his or her department over the next week. Each of them will have a goal to achieve in reducing employment costs beyond the $10 million we have saved in Round 1.

Each department head will conduct a human capital analysis. In this analysis he or she will inventory the mission-critical skills necessary to maintain our effective operations. I will be asking them to evaluate everyone in the department with respect to these skills. Your department head will decide who will remain in full employment status and who will be offered one of the alternative work arrangements I have just mentioned. I will be asking the department heads to be making their decisions based primarily on a consideration of who has the critical skills we need most. They will also rely, secondarily, on considerations of relative performance merit and experience with the company and the department. I assure you that we will take every step possible to make sure that this difficult process occurs in a fair and consistent fashion and avoids favoritism of any kind.

I understand that it’s not an easy process. Nobody likes to be evaluated, especially under the gun. Nobody likes this type of stress and pressure, least of all me and your managers. But it’s a necessary process, and your department heads will be biting the bullet to make these choices. I ask each department head to consult with your direct reports in this process. I urge each of you to make your preferences known to your superiors. Finally, I ask each department head to accommodate preferences as much as possible.

I would like to believe that we could be done after this round and that we can avoid layoffs. Maybe that will happen. But we can’t count on it now. I will be meeting with you in 2 weeks to share the results of Round 2 with you.

Let me take this opportunity to thank each and every one of you for your understanding and support during this difficult time. Your company needs you and we need each other more than ever.

Thank you. May I or anyone else who is part of senior management answer any questions? Don’t be shy. Now is the time for questions and a healthy dialogue.