It is not unusual for companies to reduce their workforce in response to the impact a crisis is having or is expected to have on the organization. Because hundreds or thousands of jobs across the country or around the world may have to be eliminated immediately, business leaders may have no choice but to announce the bad news to employees via Zoom or other video platforms.
Although mass layoffs via video can be a quick, efficient and cost-effective way for companies, they can have important downsides that should be considered before moving forward. From a PR perspective, remote firings are regarded as a cold, impersonal and detached way to lay people off and can create additional crises for organizations.
On Tuesday, Carvana, an online used car dealer in the U.S., laid off 2,500 employees, many of them over Zoom. The laid-off workers, who the company said was mostly in "operational positions," comprised about 12% of Carvana's workforce.
“An email to employees from CEO Ernie Garcia reportedly blamed slower-than-expected growth. Carvana, which has struggled to maintain its early-pandemic success, reported a net loss of $260 million in the first quarter and its stock price is down more than 84% since the start of the year,” Protocol reported.
Since December, mortgage company Better has used Zoom three times to lay off workers. In a statement to Fast Company, it cited “ongoing instability in the mortgage environment” as the reason.
Using Zoom and...
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