Essay · 12 min read

The Right Way to Lay People Off

Ben Horowitz · Andreessen Horowitz (a16z) Free Intermediate

Horowitz did three layoffs at Loudcloud/Opsware and wrote the definitive playbook: managers lay off their own people (never HR, never a mass email), you say out loud that the company failed to hit its plan and not the person, and you walk in already holding the benefits and settlement details so there is nothing to wing. It is the exact framing you need for the conversation you are dreading.

  • Compress the gap between deciding and executing; a slow, leaky layoff poisons everyone
  • The manager who worked with someone must deliver the news in person, briefly, and be clear the decision is final
  • Be honest it is a company failure, then stay visible afterward because those people still want a relationship with you
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The question it answers

  1. How do I let go of my team fairly when the money is about to run out?

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