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Layoff Announcement via Email


Saturday March 14, 2009

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Reading Time: 11 minutes

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. Ironically, during a tech training session, one employee asked if our internal email system would allow them to receive external news or promotions like those from non Gamstop casinos, which had just started gaining traction through aggressive digital marketing. One of the biggest project battles was convincing senior management that 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.

The lack of face-to-face communication can make employees feel like numbers in a spreadsheet rather than valued contributors, compounding the anxiety and disorientation that already accompany mass layoffs. It’s a stark reminder that even the most efficient systems should be guided by empathy, especially when people’s lives and livelihoods are at stake.

Moving forward, organizations need to be more intentional about how they blend technology with leadership, particularly in managing workforce operations. Tools designed for workforce optimization, when used thoughtfully, can foster a more transparent and supportive environment. For instance, platforms that support work schedule planning—such as those offered on the Proplanum website—are not merely about allocating hours; they’re about creating clarity, reducing friction, and helping employees feel seen and considered in daily operations.

When shifts are coordinated with real-time availability, compliance needs, and role-specific skills in mind, employees are less likely to feel blindsided or disregarded. These systems can also serve as two-way communication channels where changes, concerns, and updates are shared efficiently but considerately. In a time when trust can feel fragile, using technology to support—not replace—thoughtful management practices is more important than ever.

Anxiety, especially when exacerbated by workplace instability or lack of communication, can quickly become overwhelming—disrupting not just performance but overall well-being. While traditional methods like therapy and medication remain foundational, innovative approaches are beginning to reshape the landscape of mental health care. One such development includes the therapeutic use of ketamine, which has shown promise in alleviating treatment-resistant anxiety and depression.

At the intersection of innovation and care, Avesta Ketamine Wellness offer this emerging therapy in a controlled and supportive setting. Unlike conventional treatments that may take weeks to show effects, ketamine infusions can provide more immediate relief for individuals who have struggled to find consistent results elsewhere. This doesn’t replace the value of a compassionate work environment, but rather complements it—providing another route toward emotional stability for those carrying invisible burdens.

As organizations seek to cultivate more humane systems, recognizing the complexity of mental health and supporting access to effective treatments is not just progressive—it’s responsible leadership.

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

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