That term sounds better than "firing" but no matter what you call it "lay off" or "reorganization" the end is the same. The term reorganization fits best because two people lost their jobs and three were hired. Two very important things to remember if you ever manage your own business are: 1. Never hire anyone that you can't fire (including family). 2. If it is ever easy to do, you should not be a manager of people. Of course #2 is not 100%, because sometimes someone may come along that cheats, lies or steals, etc. and then it is very easy.
This time though concerned two good guys with good families that simply were not making the firm any money by their efforts. I like them, want to help them and it bothers me that they had to tell their spouse the bad news, but the fact is the longer I avoid what is necessary, the more I penalize those who are excelling at their roles. In these times dead weight can sink a ship, even when such weight is appealing. GM and Chrysler should have known this, but for small business such moves however hard have to be done. The end result business-wise is a good one, but the end result to the affected families still bothers me, and always should.
Related Story: I was once Director of Architecture for a large Tulsa Firm (50 persons total, I directed 30). Our headquarters was in OKC and I answered to the Corporate Partners. One day the Chairman called me up and said you need to trim your staff by three today! I was told to set down with the Partner in Charge of the Tulsa operations and make the determinations. After the meeting, I had the task of laying off 3 people that I did not think should be released. I later found out that two of those released went to the partner who fained surprise that I would do such a thing! He told them that he disagreed but that it was MY decision and not Corporate. That's one of the reason why I don't do corporate!
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