How Companies are Failing Workers with Ruthless Layoffs

In recent years, the Bay Area has witnessed a wave of layoffs across major tech companies, with the latest round eliminating over 400 jobs from prominent firms like Amazon, Dropbox, GoPro, and Visa. Despite the downturn in tech hiring, companies have a responsibility to manage layoffs ethically-a notion that’s gaining momentum as affected workers take to social media to share stories of being left without support or consideration.

On platforms like TikTok, employees are voicing the lack of respect and loyalty they feel when companies abruptly sever ties. One such video from D’Shonda Brown has gone viral, with her comment, “Jobs and corporations don’t treat us with the same respect and loyalty that they expect us to give them,” resonating deeply among viewers. The responses below her post highlight a troubling pattern of “retaliatory” actions by employers, such as assigning departing employees “busy work” or asking them to leave before their notice period ends.

A.J. Mizes, CEO and Founder of The Human Reach, believes that while layoffs are often necessary, they should be handled with transparency and empathy. “I think most managers can agree that receiving a letter of resignation from an employee feels like a shot to the chest,” Mizes says. “You immediately start assessing how to allocate their work, find a replacement, and sometimes worry about who else might leave. But that’s no excuse for treating departing employees poorly.”

Layoffs are not just about numbers-they impact real people, often those who have spent years contributing to a company’s success. Yet, layoffs are frequently executed with little communication, leaving employees feeling devalued. The tech industry, in particular, has struggled with this aspect, with tens of thousands of Bay Area workers affected by abrupt cuts since 2022. Mizes argues that companies should view layoffs not as a business transaction but as a human transition.

“Layoffs will always be tough, but the way a company handles them should be reflective of the culture it claims to value,” Mizes emphasizes. “Taking out frustration on employees who’ve chosen a new path or been caught in company cutbacks only breeds distrust and dissatisfaction. Executives and managers should be supportive, even proud, of employees who are moving on to their next chapter.”

Ethical layoffs can prevent resentment among remaining employees and protect the company’s reputation. When employees see colleagues being laid off without respect, they become wary of the company’s loyalty to its workforce, creating an atmosphere of mistrust. This can lead to lowered morale and productivity, which, ironically, is what companies often try to prevent when they initiate cuts.

Mizes suggests that companies need to have a clear and humane process in place for handling layoffs. This can include offering severance packages, providing outplacement support, and ensuring that communication is transparent. “There’s nothing worse for employees than feeling blindsided. Companies owe it to their workforce to be as honest and supportive as possible in these situations,” he notes.

There’s a compelling business case for compassionate layoffs. Studies show that companies that prioritize ethical layoffs maintain higher levels of engagement and loyalty from both current and former employees. In contrast, companies that handle layoffs poorly often find it harder to attract and retain talent in the future.

The recent tech layoffs have shown that no one is immune, from engineers to operations staff, leaving many to question if the industry’s corporate culture truly values its people. For some employees, the lack of support during layoffs has been devastating, with reports of people struggling to pay bills and finding alternative employment. Yet, companies have the power to ease these transitions by offering support and treating departing workers with respect.

“Some executives treat layoffs as purely a numbers game, which can feel very transactional for employees,” Mizes observes. “But layoffs are about more than balancing a budget-they’re about people’s livelihoods. Offering resources, support, and understanding during these moments isn’t just the ethical thing to do; it’s the smart thing to do for future hiring and employee trust.”

A growing number of employees are calling for a workplace culture where loyalty is a two-way street. Many want to work for companies that recognize their contributions even during tough times. Companies like GoPro, Visa, and Amazon, which are responsible for recent Bay Area layoffs, have the opportunity to set a positive example by fostering transparency and compassion in their layoff processes.

“We should be building work cultures that encourage career growth, even if that growth eventually takes someone to a new company,” Mizes asserts. “The goal should be to create environments where people feel supported from start to finish, whether they’re entering, staying, or exiting. That’s real corporate responsibility.”

As the year draws to a close, and with more tech layoffs expected, Mizes encourages companies to think critically about their approach to layoffs. For workers affected by downsizing, the path forward may feel uncertain, but companies can help ease the transition. Offering severance, career coaching, and helping workers navigate new opportunities are simple but impactful ways companies can show they care.

“A layoff doesn’t have to be a painful experience for everyone involved,” Mizes says. “If companies treat employees with respect, they’ll be remembered as a place that values people. And that, in the long run, is worth far more than a short-term cost cut.”

In a labor market where corporate reputation increasingly influences talent acquisition, companies have a lot to gain-or lose-by how they handle layoffs. Treating layoffs as a responsible transition rather than an abrupt severance could redefine what it means to be a reputable employer. The bottom line? Respect shouldn’t be a casualty of cost-cutting, but a priority that helps companies and their people weather change with dignity and mutual respect.

Adam Torkildson
Adam is a proud American citizen, entrepreneur, 2x founder, father of 2, and married. He considers himself a Constitutional Conservative and loves to golf and read books when he's not running his businesses and writing content.