Stripe, a payment technology company and the Bay Area’s second most valuable startup, sent layoff notices to 300 workers Monday – accidentally sending a cartoon picture along with the news. The picture, attached as a PDF, is a cartoon image of a yellow duckling, with the label, “US-Non-California Duck”, according to reports from Business Insider. Rob McIntosh, the company’s chief people officer, sent an email that expressed his regret to those who received the duck. “I apologize for the error and any confusion it caused,” he added. “Corrected and full notifications have since been sent to all impacted Stripes,” he shared, using the company’s internal nickname for its workers.
Layoffs were primarily in product and operations roles, with some in engineering affected as well. Additionally, some impacted staff were sent an incorrect termination date in email. The company, headquartered in South San Francisco with dual headquarters in Dublin, has about 7,000 employees. It’s the largest privately-owned fintech company, with a valuation that hovers around $65 billion.
Layoffs: How to Get It Right
A bizarre misstep of sending a cartoon to laid off employees is a great way to add insult to injury. In 2022, when Stripe announced it was laying off 14% of its workforce, Patrick and John Collison, the company’s cofounders, were contrite. Their message, which was praised for its candor and vulnerability, said in part, “We’re very sorry to be taking this step and John and I are fully responsible for the decisions leading up to it.”
Note the ownership in the message. The CEO didn’t duck responsibility. Details were provided, regarding the severance packages and more. “Most importantly,” the memo continues, “while this is definitely not the separation we would have wanted or imagined when we were making hiring decisions, we want everyone that is leaving to know that we care about you as former colleagues and appreciate everything you’ve done for Stripe.” The consideration and respect shown here is vital, when parting ways.
When Layoffs Happen, It’s No Joke
Layoffs in technology are prevalent, as white collar workers are experiencing a shrinkage of opportunity. For leaders who are letting people go, layoffs are not a laughing matter. Sending random cartoon images with ridiculous captions is perhaps an honest mistake. But the impact is no joke. It’s the exact opposite of the kind of leadership communication that Stripe’s executives have shown in the past.
Workers, even those who are perhaps low performers, are offering dedication, time and service – trading time and effort to help a business grow. When that service is no longer needed, respect still is. When letting people go, it’s vital to understand the emotional impact of the decision. While that impact is not necessarily the responsibility of the employer, acknowledgement is. Recognizing the service of employees, during a layoff, is the best way to part ways.
As layoffs become more prevalent for managers and tech companies, leaders need to get the communication right. Stripe has shown in the past that they can do that – and with multiple layoffs announced over the last few years, they’ve had some practice. The prior memo from CEO Collison is a master class in respect – making a necessary transition as compassionate as possible. Layoffs are not a time for cutesy images – it’s a time for caring, consideration and appreciation, as those let go have to find what’s next.
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