“HR Heretics” | How CPOs, CHROs, Founders, and Boards Build High Performing Companies The Brutal Truth About Running Layoffs
Nov 13, 2025
Nolan and Kelli dive into the challenging world of layoffs, sharing insights on humane treatment and strategic planning. They discuss the importance of clear criteria and communication to maintain trust. Discover the 'Carta Playbook' principles for effective cuts, and learn about offering opt-in severance to empower employees. They emphasize accountability among leaders and the significance of treating people with empathy throughout the process. This conversation highlights crucial strategies for navigating sensitive organizational changes.
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Define Goal And Cut Criteria First
- Do clarify the goal and cut criteria before executing a RIF to explain decisions clearly to the organization.
- Loop in legal, run a DEI analysis, and train managers so you execute methodically and responsibly.
Carta's 2020 Playbook
- Nolan recounts Carta's 2020 layoff where they cut 13% and were praised for execution.
- They focused on humane treatment and a single deep cut, later rehiring when the business allowed.
Cut Deep, Do It Once
- Do cut deep and aim to run one layoff rather than multiple small ones to avoid repeated organizational trauma.
- If necessary, rehire later rather than dragging out repeated rounds of cuts.