Overview of The New Corporate Playbook for How to Do a Layoff
This WSJ PM edition (Monday, November 17) covers evolving corporate layoff practices and the reputational, legal and human costs of making job cuts remotely and at scale. The episode pairs that discussion (with reporter Chip Cutter) with a segment on the rise of prop betting in pro sports (with Jared Diamond) and short updates on markets, U.S. politics, international developments, and the Baby Shark creator’s IPO.
Key segments — quick summaries
- Layoffs: Companies increasingly use texts, emails and scripted remote calls to notify large numbers of employees, prioritizing speed and emotional containment but risking reputational backlash and legal/political scrutiny. (Interview: Chip Cutter)
- Prop betting in sports: Online betting has multiplied in-game prop markets, prompting leagues to limit risky prop bets to protect competitive integrity. (Interview: Jared Diamond)
- Markets & U.S. news: Major U.S. stock indexes fell about 1% amid a tech sell-off; FEMA’s acting head resigned; FBI-related court developments tied to Fed Governor Lisa Cook.
- International & policy: Hamas’ popularity in Gaza has risen since a ceasefire (largely due to restored security); the U.S. expects a UN Security Council vote backing a Trump peace plan for Gaza; the U.K. proposes stricter asylum rules and penalties.
- Culture/business: Pinkfong (maker of Baby Shark) prepares an IPO in South Korea despite kids-content monetization limits on YouTube.
- Bonus: WSJ notes a special episode on heavy truck sales in their Economic Indicator series.
Deep dive — The new playbook for layoffs
Why employers are shifting methods
- Scale and speed: When organizations must sever thousands of positions quickly, HR seeks efficient, centralized approaches.
- Emotional management: Remote, synchronous notifications (text → email or mass scripted calls) reduce in-office scenes (e.g., employees consoling each other) that some companies view as operationally disruptive.
- Pandemic precedent: Pandemic-era practices (Zoom notifications, surprise calendar invites) normalized remote layoff delivery.
Typical methods and examples
- Amazon: Laid off ~14,000 employees who first received a text telling them to check email, then learned via email.
- Southwest Airlines: Some employees told via scripted, listen-only video calls that didn’t allow immediate response.
- Condé Nast: After moving Teen Vogue under Vogue.com and firing some employees, a small in-office protest led to firings and a rally involving the New York Attorney General—illustrating the risks of in-person reactions.
Downsides and risks
- Brand and recruitment: Public criticism and social media backlash can damage a company’s reputation and perceived values.
- Legal and political exposure: Terminations following protests can attract regulatory attention (e.g., state AG intervention) and possible legal challenges.
- Employee morale and trust: Impersonal delivery methods can erode remaining employees’ trust in leadership.
Practical considerations (recommended)
- For employers: balance efficiency with dignity — provide clear, empathetic communications, post-layoff support (outplacement, benefits guidance), and legal review of policies to reduce downstream risk.
- For employees: expect digital-first notifications; monitor email/HR portals; document communications; ask HR about severance, COBRA/unemployment, and legal options if terminations violate policy or law.
Sports betting — why prop bets exploded and what leagues are doing
- Root cause: Online/mobile sportsbooks turned in-game events into continuous betting opportunities, creating many niche prop markets (player stats, pitch outcomes, drive results).
- Consumer demand: Fans engage more when they can bet frequently, driving sportsbook revenue growth.
- League response: MLB, NBA and NFL are beginning to restrict certain prop markets (e.g., MLB removing individual pitch markets) and collaborating with sportsbooks to limit particularly manipulable bets.
- Tension: Leagues benefit from fan engagement via gambling but must act to preserve the integrity of competition. Notable quote: “If people start doubting that what they're watching is genuine competition, you essentially don't have a business anymore.”
Other notable headlines
- Markets: Major indexes down ~1% early in the week; tech names (Meta, NVIDIA) weak ahead of earnings.
- FEMA: Acting head David Richardson resigned after ~7 months; FEMA chief of staff to step in. Richardson faced criticism for lack of emergency-management background.
- Lisa Cook: Her lawyer argues mortgage-application discrepancies were inadvertent and not fraudulent; Supreme Court temporarily blocked Trump’s attempt to remove her from the Fed—arguments set for January.
- Gaza & diplomacy: Hamas’ street presence post-ceasefire has boosted its security image in Gaza; U.S. expects UN Security Council backing for a Trump plan to create an international stabilization force/transitional government.
- U.K. asylum overhaul: Proposals include faster expulsions, longer residency waits (up to 20 years), and asset seizure to offset processing costs.
- Pinkfong/Baby Shark: Despite massive YouTube views, kid-focused monetization limits capped revenues; Pinkfong plans a South Korea IPO expected to raise nearly $50M to expand content.
Notable quotes
- Chip Cutter on employers: “HR people keep trying to make this more efficient.”
- Jared Diamond on sports integrity: “If people start doubting that what they're watching is genuine competition, you essentially don't have a business anymore.”
Takeaways for listeners
- Employers: Efficiency in layoffs can backfire; weigh reputational and legal risks against operational speed and offer humane support.
- Employees: Expect remote-first notifications during large reductions—monitor communications and secure documentation, benefits and legal advice.
- Investors and stakeholders: Corporate treatment of workers increasingly affects brand risk and investor perception; watch reputational fallout and regulatory responses.
- Sports stakeholders: Continued growth in prop betting will force evolving rules; integrity-preserving actions may conflict with revenue incentives.
Where to find more
- WSJ’s special Economic Indicator episode on heavy truck sales is in the feed.
- Episode produced by Pierre Bien-Aimé and Zoe Kolkin; supervising producer Tali Arbel; host Alex Osilev.