MPO: 82% report adverse side effects of layoffs — compassion pays off in life sciences.
In the medtech sector, the threat of layoffs looms large. A decline in the sector resulted in downsizing action among all life science companies surveyed in the 2023 Randstad Enterprise Global Severance research. Notably, 65% of life sciences companies surveyed believe they managed layoffs well for cost reduction, while 82% admitted to negative repercussions arising from these actions.
According to McKinsey, although slight growth is expected in 2024, the sector remains in a state of flux. That’s why leading medtech companies are rewriting the narrative of layoffs by integrating empathy, transparency and support into their strategies — with fair severance and comprehensive outplacement services setting new standards for industry conduct.
In her new article, Tania de Decker, managing director, Global Strategic Accounts for Randstad Enterprise outlines the substantial ethical considerations and brand ramifications of downsizing and how managing layoffs based on costs alone puts companies at considerable risk with job seekers, employees and customers.