Layoff Announcement via Email

This past Monday, March 9, 2009, one of my former employers sent a company wide layoff announcement via email. Sadly some of my friends were impacted by this layoff. Given the state of the US economy we have all grown accustom to layoff news. It is happening everywhere, touching every industry; however, prior to this week Mercury Insurance Services, LLC, founded in 1962, had never resorted to layoffs. I could ask a lot of questions about this business decision, most of which are not answered in their press release. The one question that weighs on my mind is why did they choose to communicate this business decision via email?

Perhaps companies feel this is accepted email etiquette. For some companies, maybe. But you need to know that prior to mid 2002 90% of Mercury employees did not even have personal computers, they worked with dumb green terminals. That's right,no email, no word processing software, no internet access...they spent eight hours a day in their cubicles connecting to a mainframe to perform and produce their work product - underwriting policies or adjusting claims. In 2001 I was named the project manager to bring Mercury employees into the 21st century. One of the biggest project battles was convincing senior management that the employees should have and use email. I won the battle and this week I learned that senior management used email to announce a company wide layoff. What a difference seven years can make!

Generally technology is wonderful for the work environment, but have we technically progressed to the point that it is considered acceptable to deliver life altering news via a cold email? Let's remember that this startling news negatively impacted those who were not laid off, as well as those who were. I read an interesting article on this subject that I invite you to read: "Is There Such a Thing as a Good Layoff?"

Today I dedicate this blog post to all Mercury employees, those who were fired and those who were retained. In September 2004, when I resigned from Mercury I sent a good-bye letter to those whom I had worked with over my almost seven year tenure. And because I had managed many company wide projects this letter went to many employees. In that letter I shared the following thoughts, which ironically are still pertinent today:

---As I leave you, I tried to think of the best advice I could offer you as individuals and as a group. It came to me that what I have always tried to impart to you is to question each request as if your life depended on it. Do not be afraid to stand your ground for the betterment of your work ethic and the company. In other words, do the right thing. A few years ago, I saw a movie, "The Winslow Boy", and in the closing scene a defense attorney states: "I wept today because right had been done." When questioned by the defendant's sister, "Not justice?" to this the attorney replied, "No, not justice. Right. Easy to do 'justice'. Very hard to do 'right'."

In these difficult times, can we all just try to do right?

Good night and good luck!


March 10, 2009 5:14 PM EDT

In a Form 8-K, Mercury General Corp. (NYSE: MCY) announced that on March 9, 2009, the Company took action to eliminate approximately 360 employee positions or 7% of the Company's workforce in an ongoing effort to improve its cost structure. The Company expects to record a charge, in the first quarter of 2009, of approximately $8 million for severance and other employee termination costs in connection with the reduction in workforce, all of which will result in future cash expenditures. The total annualized pre-tax cost savings that are expected to result from the employee reductions is estimated to be approximately $22 million.March 10, 2009 5:14 PM EDT

Hunger in Eastern Massachusetts And How You Can Help

Hunger in Eastern Massachusetts And How You Can Help

Hunger is a silent epidemic. Each year, more than 320,000 people seek food assistance in eastern Massachusetts alone. They are the most vulnerable among us: children and seniors. They are people we know: our friends, neighbors, and colleagues. They live in each and every one of our communities, and are quietly seeking help from the more than 600 member hunger-relief agencies in the nine counties and 190 cities and towns of eastern Massachusetts that receive food from The Greater Boston Food Bank.

Lisa was checking in to Twitter this morning and saw a post that intrigued her from Connie Reece, about how Tyson foods was donating 100 pounds of food for every comment to this post. This time of year a comment is not to much to ask for please do your part, comment, feed the hungry and prove that tweeting and blogging about a subject is more than a bunch of people talking about what they had for lunch or where they can spot their cars on google maps.

Go Comment, it will make you feel good.

Gas Prices Below $1.75?

As we all have probably noticed, unless you take a cab or public transportation in a major metropolitan area (excluding LA), oil and therefore gas prices have been dropping consistently over the past few months. More specifically, since July fuel has dropped in half, according to the linked article. I am far from an expert, but my review of the issue has this due to reduced fuel consumption, projected usage and other supply and demand factors.

This decrease in energy cost, including heat and natural gas is one positive of the current tough times. Moreover, this drop in energy cost then leads to a potential drop in food and transportation costs; the same areas that when gas was spiking were out of control- plane flights, food etc.

So while the economy is in a slight decline, the positive side of me says, here is what good has come of it. Hopefully this decrease in fuel will jump start the positive attitude we Americans need to pull out of this slump.

http://news.yahoo.com/s/csm/20081120/ts_csm/atwobucks