I just read this morning that Sony plans on cutting 16,000 positions. This comes on the heels of the Tribune Media Company filing for bankrupcy and the Republic Window and Doors company in Chicago closing its doors. The Republic employees refused to leave because they are owed severance and vacation pay. Bank of America was in the middle of the problem. Employees expressed outrage because BOA got a federal handout and withheld critical funds to pay off the employees. Initially BOA believed that not extending the line of credit and just closing the business was good business. Now the bank has come forward with the money to pay employees severance, vacation, and a couple of months of health insurance. 

This is not a typical recession. The federal government is giving hand-outs to banks, the auto-makers, and perhaps other “critical” sectors of the economy. Once the government started with the 700 billion dollar program it opened the flood-gate for all businesses, and their employees to ask, why not me? Good question. Small companies make up 85% of the American workforce. Where do you draw the line?

Recessions mean lay-offs. And lay-offs mean disgruntled workers. With new media these workers can publish their opinions for the world to review and share. I believe as the recession deepens blogs, forums, and microsites will be flooded with negative material about the government, companies, and their leaders.  This will not help the overall economic situation and could even spiral the economy further down the drain. 

Many of these people will have a “beef”, but most of the time publishing an opinion will not help that individual. It will just sound like sour grapes, unless that fired worker’s cause is picked up by others and it gathers steam. In that case, there is probably some real injustice being done and the company now has a problem. 

Companies must communicate, in advance, with all employees about the economic state of the company. Timely updates clear up confusion and stop speculation in a work force. When employees are let go, companies should do it in a conversation, and then have programs in place to help with the transition. Companies are groups of people. And when companies forget that, humanity flies out the door.  And that may circle back in the form of negative new media.