Target CEO attempts to regain trust and boost employee morale; PwC employees react to layoffs
Plus, is RTO a strategic way to cut the workforce?
- Target CEO addresses staff in company memo – but it may not have landed well.
After ditching its DE&I policies earlier this year and the subsequent boycott of Target stores around the country that caused sales to plummet, Target CEO Brian Cornell released a companywide memo attempting to reinstate a positive work culture after “a tough few months,” according to an employee who shared the memo on Reddit. Cornell addressed the “uncertainty” its 400,000 employees may have been feeling.
He said:
“When we open a new store or supply chain facility, it’s not just about selling goods-it’s about creating hundreds of new jobs in a community, opening the door for someone’s first promotion or helping a team member earn a degree through our education benefits. Every time we grow our business, we’re investing in our team’s future, too.
“I recognize that silence from us has created uncertainty, so I want to be very clear: We are still the Target you know and believe in… You’ll be hearing from us more often, and we want to hear from you, too, Talk with us and your leaders, share your ideas and ask questions so this is the start of an ongoing conversation.”
Cornell addressed the rocky emotions employees might be experiencing and attempted to be reassuring – but he didn’t address how Target will move forward in an upward trajectory.
Some commenters on the thread even pointed out that the memo looks more like corporate-speak than an actual solution to company morale. This is because Cornell really doesn’t address steps he is taking to make changes.
Cornell has an opportunity to reunite his employees and change Target’s somewhat marred reputation. Conversations are great, but action is greater and Cornell needs to layout his game plan with transparency.
- Employees react after an unexpected 1,500 are let go from PwC.
PwC has issued its second biggest layoff in less than a year by reducing 1,500 employees from its audit and tax divisions.
According to The Finance Story, employees were notified via a Teams meeting invite late last week.
Employees were notified via Microsoft Teams of a meeting notification followed by an email with severance details, according to the news outlet. Employees did not see the cuts coming, with PwC recently bringing on more staff and the company additionally reassigned staff to different areas, including consulting and advisory roles.
The cuts were unexpected, according to the Finance Story, and employees were left reeling, trying to understand what happened after little was shared.
The news outlet stated that the tone left inside the workplace was grim.
From the report:
“Employees feel blindsided by this decision. Some say communication was lacking, and hiring was misaligned with business reality. Others say it’s a cost play in disguise, wrapped in the language of ‘business needs.’”
One former employee said on LinkedIn following the news,” After 2.5 years of hard work, growth, and meaningful relationships, my time at PwC has unexpectedly come to an end due to the most recent round of firm-wide layoffs—just days before a major milestone I had been working tirelessly toward.”
PwC seemingly left the job cuts unaddressed, with a reportedly cryptic and impersonal call via Teams. This only serves to lose trust from current employees, or perhaps make them anxious about job security.
Companies can be realistic about structural changes and downsizing without shirking their humanity. It’s not only a better strategy to upkeep employee morale, but it’s critical to a more productive work environment – because happy employees, supported employees, do their jobs with more enthusiasm.
- Could RTO be an unofficial tool of attrition?
Post-Covid RTO mandates are rolling in and many employees are unhappy. But could this be more than a strategic move for collaboration? What if companies are using RTO as a way to reduce its workforce without having to be the bad guy?
Business Insider recently reported there’s some teeth to the broad speculation, saying:
“Companies are right to believe that making people come into the office will drive some of them away. If I’ve learned one thing from reporting on the RTO wars over the past few years, it’s that people really like the ability to work from home. They like it so much that, on average, they value it as a job perk equivalent to 8% of their salary — a number that may be as high as 25% among tech workers.
“If your business isn’t doing well, or if you need to reallocate head count among departments, it makes sense to force some attrition — especially during a period of economic uncertainty, when virtually no one is quitting their job. By pushing employees to leave voluntarily, employers reduce their payroll without having to provide the departing workers with severance or health insurance. It’s layoffs on the cheap.”
It may not just be about weeding out workers, however. There are some upsides, including cultivating better work culture and more productive employees, according to the news outlet. Executive teams believe there are benefits to working in an office, at least part of the time.
And Business Insider’s reporting shows that some of this true. But the biggest takeaway is that happy employees are productive employees. Using RTO as a means for layoffs is a risk. There’s little control over who will leave, including top talent, and there’s no telling how many employees may bounce on mandated RTO policies. So organizations have to weigh the risk and reward.
The best bet is to communicate. Implement a strategy that works for different kinds of employees. Be transparent about how the organization is doing. Discuss the whys, not just the how’s with employees to help them understand. And hopefully this produces a mutually beneficial working relationship.
- How about some good news?
- Pope Leo XIV’s Chicago roots are spurring ‘holy humor’.
- New Zealand’s sheep population still outweigh its humans.
- Bob Dylan can actually paint really well.
- Ragan Training is great for communications pros to find inspiration and resources.
- You should be rewarded for your work. Find out how to earn an award here!
Have a great weekend comms all-stars!
Courtney Blackann is a communications reporter. Connect with her on LinkedIn or email her at [email protected].
