Introducing the Random Headcount Reduction Strategy (RHRS): The cheaper layoff strategy
Oct 04, 2024Return-to-office (RTO) mandates are back, and while big corporate is spinning it as a way to improve collaboration and boost productivity, let’s call it what it really is: a business strategy to reduce headcount without the formal layoffs.
I’m calling it the Random Headcount Reduction Strategy (RHRS), and it’s the next move after layoffs became a standard business strategy.
Recent Examples:
-> Dell: They mandated all sales personnel to return to the office in September, and I’m betting this led to a wave of turnover that will help them hit their profitability targets—without the headline risk of a layoff.
-> Amazon: They’ve pushed mandatory RTO at a massive scale. And I’m sure they will lose some of their best employees—but they don’t care.
Welcome to the final evolution of corporate America: the commoditization of talent and another reminder to GenX that they are not appreciated in corporate
The Downside for Companies?
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They’ll likely lose their most in-demand employees first—those who will have the easiest time finding new jobs.
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They'll crush morale and create a huge amount of resentment from the employees forced to head back to the office against their will.
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Recruiting top talent will be much harder if they're limited to geographies around their offices.
This all reinforces the unfortunate reality that employees are treated like numbers on a spreadsheet
What’s your take—have you seen the RHRS in action where you work?
A special shoutout to one of the members of the Corporate Escapee community who inspired this with her term Random Headcount Reduction Policy. She remains anonymous as she’s still in corporate, but her insight was spot on.
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