Uber CEO cites need for ‘simpler’ company in layoff memo; Tim Cook says goodbye to Apple employees

Greetings, comms pros! Let’s take a look at a few news stories from the last week and see what we can learn from them.

1. Uber chief attempts to square 10% layoffs with financial successes

Uber Dara Khosrowshahi told employees in a memo that the company is cutting 10% of its employee base. In the memo published on Uber’s website, Khosrowshahi said that the layoffs occurred against the backdrop of positive financial performance out of a need to be “simpler and faster.”

I’m sure you’re asking, ‘Why, and why now?’—particularly since our business is performing so well. Over the last 5+ years, Uber has grown by orders of magnitude, with our top line nearly tripling. We’ve built new products, expanded into new businesses, reached more consumers and supported more earners, and become a much larger and stronger company. But that growth has also brought complexity: more layers, more coordination, more fragmented ownership, and in some cases structures that made sense when businesses were smaller but no longer serve us well at our current scale.

Khosrowshahi gets ahead of employee speculation. He also gives a reason for the layoffs, pointing out Uber’s need to grow in a more complex environment while also stating that he’d rather make one big cut as opposed to running layoffs that other companies have done. The main issue with Khosrowshahi’s explanation of growth causing complexity is that it can raise a question among employees about what will happen when the company grows again. While this statement does cover a lot of ground and leadership’s vision for the future of the company, communicators should also work with managers to prepare them to answer questions from employees on the team level.

2. Former Apple CEO Tim Cook bids employees farewell

Former Apple CEO Tim Cook said goodbye to the company’s employees on his final day at the helm of the tech giant. In an internal memo obtained by 9to5Mac, Cook attributed much of his success to the employees at Apple and lauded the culture at the company while invoking co-founder and former CEO Steve Jobs.

Together, we have created something far greater than any one of us could have imagined or accomplished alone. And that’s the secret to our success. We bring out the best in each other. We lift each other up. We have made it possible to leave our “dent in the universe,” as Steve once described it, because of who we are and what we believe, because of what we value and how we see the world. How fortunate we are. How fortunate I am.

In the memo, Cook also said that he’s staying on as chairman and that Apple was in good hands with incoming CEO John Ternus.

Cook’s memo places its main emphasis on the employees making Apple the company it is today as opposed to himself. In addition, by referencing Steve Jobs, Cook frames his exit as a part of Apple’s longer story that’ll continue into the future. Cook’s words of confidence about new CEO John Ternus also serve to provide employees with a sense of stability amid the departure of their longtime leader. Cook is clear in stating that Apple’s strength comes from its people and culture, rather than any one person. That’s a smart affirmation of company culture in a time of major change.

3. Meta backtracks on AI token usage as part of employee reviews

Tech giant Meta is walking back its push to include the use of AI tokens in its performance evaluations for engineers. According to an internal memo viewed by The Information, Meta removed expectations related to the use of specific AI tools and instead placed more focus on the quality of employee work and overall impact. Earlier this year, Meta told employees it was bringing AI into the performance review formula and also instituted a program of asking employees to train AI platforms and creating an AI task force — the latter of which were rolled back after employee backlash.

“Managers should look at output quality, velocity, problem complexity and scope taken on,” the memo said about reframed employee expectations.

The memo also stated that AI adoption itself wasn’t the ultimate goal but it wanted employees to focus on, “better outcomes: higher-quality shipping and faster iteration.”

While the parts of the memo that were made public are clear, what’s not immediately apparent is whether or not Meta acknowledged that employees were given a different narrative before the course reversal. In these situations, internal communicators need to acknowledge when the company is changing directions, state why and outline what employees need to be aware of. That clarity is necessary to keep employees engaged with the goals the company has set forth and to ensure they’re prioritizing the right things. It’s also worth noting that this is yet another pivot for Meta regarding AI. When pivots happen, communicators need to make things clear from the outset of the change, or confusion will easily take hold.

4. How about some good news?

• The WHO declared Uganda Ebola-free, marking the end of a recent outbreak.
• NASA launched the Nancy Grace Roman Space Telescope, which will aim to unravel the mysteries of our universe.
• A rare watch tucked away in a jewelry box in Britain sold for the equivalent of almost $80,000.
• Ragan Training is an excellent place for communications professionals to find inspiration and valuable resources.
• You should be rewarded for your work. Find out how to earn an award here!

Sean Devlin is an editor at Ragan Communications. You can connect with him on LinkedIn here.