Saturday, December 13, 2008

The Recession Hits Home

The good news is, I still have my job. My wife does not and neither do 11 of my colleagues.

For most of the year I have felt isolated from much of the economic turmoil that surrounds us. Often the CFO of my company would state that we are "recession proof". We all knew the numbers were down on both consumer sales and franchise development. I did not think MM would goose-egg consecutive months, but they did. Even as the gloomy numbers rolled in and I read about 3M slashing tens of thousands of jobs, I really did not see it coming to hit me.

For one thing, our department was down a man. Under normal circumstances there are seven of us in my department. One of our number moved onto some better things and we ran most of the year on six. We hired to fill the empty space, but she did not fit with the culture. Another colleague cut back his time to 30 hours so that he could pursue other endeavors. And another was out sick for at least two months. In order to adequately stay on top of our work, we had to hire some part time help whose importance and hours grew as we faced the changing shortfalls. So I considered there to be a surplus in our budget given the fact that we never were fully staffed. Then it happened.

Two full timers and our part time help got let go, along with nine other colleagues. In many respects the cuts made sense given the down economy, the poor numbers, and a tough year ahead. Also, Senior Management targeted the more recent hires in the department - although, not exclusively. Accounting lost their Controller; IT lost two folks, three if you count their intern, one of whom had been with us for quite some time; MM lost two, but really three because one of their number will be transferring to a marketing position; DC lost one, which represented 50% of that department; FD lost three, and the newest hire across brands stayed. As I mentioned, our department lost three counting our invaluable part time help. We are now effectively running at 50%. To make matters worse, one of our managers will be out of the country for the Christmas holiday and will be on maternity leave in May. And then there will be three. It was bad enough when we had one man out for two months. I don't know what it will be like three men down.

I understand the economic realities behind the cuts and even in some ways I understand the depth of the cuts. We are a fairly small place and I estimate we lost something on the order of 10%. I could second guess cuts and ask questions (Wouldn't you want your front line contact to remain fully staffed so no opportunities are missed, especially during the eventual upswing?), but I don't think that will do much good. What I can't understand in the least is the timing and the methodology.

We were two weeks and a day from Christmas. The timing could not have been worse. Everyone's Christmas is now impacted. Can I really enjoy the holiday knowing that my friends and colleagues no longer have work? Is the company really in so much trouble that they could not wait 21 days? I would certainly have let my Christmas bonus pass in order to allow my fellows to work through the season and I am confident many, if not all, of my co-workers would agree with me.

Finally, the methodology was completely contra to our culture. There was no warning, not even to department managers in some cases. Even Ford Motor Company gave their office workers notice that on day X cuts would be made based on factors Y and Z. There was none of that. Swiftly executed cloak and dagger. Log off and I will escort you off the premises, escort you off the premises!!. As a legal man, I understand the need for procedure, but I don't understand why the procedure could not have been different. Especially at a place where we welcome folks as "family". Why couldn't there been an announcement on Dec 10 that cuts were coming on Jan 5? Sure it puts a damper on the holiday, but it's better than not having a job for the holiday. And then we would have known it was coming and not felt betrayed. We may still have been surprised by the picks and the depth, but at least we would have been a little prepared.

I am upset and saddened and doing what little I can to help those I care about.

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