Laying People Off -- Tearfully

The worst has happened, the moment I dreaded. I have had to succumb to the hellacious economy and cut my staff. It's an awful, sinking feeling. I haven't felt this insecure about the future since I started my company almost 20 years ago. Will we ever ride that wave again?

The wave that enabled me to grow my business at a rate of 20 percent a
year to numbers I never even imagined possible. Was it all a false boom? Why wasn't I suspicious of all this sudden wealth? Why did I think it was normal to buy as many designer shoes as I wanted or dinners out for insanely large groups. Every day I ponder what would have happened if I had sold my company during the boom. The opportunity was there, but I chose to prolong the negotiations with the main concern being my staff. I was worried for my employees, and that the culture of my company would be changed forever. But now I'm having to be the one to disappoint and shatter dreams.

It was the newest and most enthusiastic members of my staff that took the hit, most never even given a chance to prove their worth. There were tears and panic and I'm sure a very large sense of insecurity. A few will move back home to the Midwest and the south and live with their parents in states that don't offer up many jobs in fashion. How could they possibly survive in one of the most expensive cities in the world? A city they came to hoping to fulfill their dreams.

Why did it come to this? Where were our leaders? Why weren't enough people questioning this falsely inflated boom? Why did we all decide luxury was an entitlement? It would be comforting to believe that the cuts we have activated will help the company grow stronger. But what of our youth that we have disappointed? We are turning them away, stripping them of opportunities to learn and grow. In this time of needing to be ingenious and creative to survive, the lessons learned could last a lifetime. What lessons will they learn? Will it be just a bitter reminder? Will they be brave enough to venture back to NYC when and if it all blows over? Or will they end up stocking shelves at the local mall? I know this attrition was necessary; I know things had gotten out of control on all levels, but when I have to callously close the door on bright devoted members of my staff it hurts. I just want it to end and I hope our new government can lead us out of it.

 

Comments

[littlepitcher]

11:33 AM on 04/04/2009

These are the same business owners who tell us to hold our stock when it tanks, and tell us to "buy local" instead of going to the big boxes. The same ones who hired out of Juarez and Michoacan, and laid the locals off. They tell us to be thrifty with our limited incomes, to save against hard times. Admittedly, their conspicuous consumption provides jobs, albeit often at third-world wages.

OK, I held my stock in a losing market and it's rising again--one is still above what I paid for it, the other within a buck.
Why aren't you holding your talent stock?

Yesterday I had to buy some software. Just this once, I did what the big boys did. I purchased from Mexico, as a lesson to all the IT pros who call nativists like me "wingnuts". Hire Americans, and our purchases can support the world economy.

When you lay off Americans, the whole world's economy suffers. Give this some thought.

[Exene]

02:28 PM on 04/03/2009

I love Nanette Lepore's work. I have an evening gown from the late 90s that I still love and wear whenever I have occasion to. I can't usually afford her designs, but I admire her greatly.

[clintonella]

11:22 AM on 04/02/2009

The passionate response to Nanette's heartfelt piece is fascinating Some have rebuked Nan for being disingenuous. I've known her for years and can say she's not. We've both worked hard, but chosen different paths. Hers made her an admirable living, but to succeed, she's had to "play the game." And once you're there, it's almost impossible to not get caught up. I worked in a hospital, and felt like a slacker when I worked 60-70 hrs/wk, because my friends, residents, worked 100. Indulgence and extravagance have, I agree, gotten out of hand. But I"ll say this: Nanette works harder than anyone I know in a job that challenges her creatively, emotionally and from a business perspective, daily. She is nurturing and truly cares about people in her company. None of us is perfect. Consumerism and humankind's natural bent to greedy excess have made us lose perspective. It's not government's fault, not Nanette's fault; it's all our fault. And in defense of the intent and spirit of my friend's remarks, I'm positive it hurt to lay people off. All of us contributed to the frenzy. However, Nanette's also been generous to charities, based her manufacturing in NY, has had the gumption and fortitude to pursue her dream and has helped others pursue their passions. Instead of admonishing, we should learn from these mistakes and be conscious of the far-reaching effects of our actions. Nanette was brave to express her chagrin so honestly.

[DoctorDoctor]

12:08 PM on 04/01/2009

now you know the joys of building your own business first hand. if you'd been in real estate, cattle or oil texas in the '80s, you'd have already known what a depression is and how devastating the mass failure of an arm of the lending industry can be to us mortals. Oh. And how lucrative that can be for the few who engineer the failure. That someone named Bush (Neil) walked away from one of the biggest examples of the S&L fraud healthy and wiser but also considerably wealthier should not go unnoticed. Silverado was huge. it personified the wink-wink good-ole-boy boardroom fraud only the privileged get to pull off because they're the only ones in the boardroom where it all gets done. MAI used to be a professional designation for real estate appraisers. once reagan got rid of the S&L examiners, it became an acronym for "Made as Indicated". inflated appraisals justified unwarranted loans on hyper-valued real estate until it all came tumbling down. then, in its infinite wisdom, the RTC was formed to channel the REO (real estate owned) to the very wealthiest cronies of bush et al --- just like they're doing now.

and there's not a damned thing we can do about it. no wonder the first things cheney and rumsfeld installed at their taos, new mexico properties was an underground bunker --- one for each of them.

[billw8017]

03:28 AM on 04/01/2009

In the century preceding the fall of the Ming Dynasty, China splintered. During these unsettled times, collecting taxes became almost impossible, and the different areas would just print their paper money. In Manchuria, the money went to a 4 000 000th of its value. The Manchurians reorganized a non monitary society directed by "banner men." They were able to take over China largely because the government troops were "unpaid." There have been hyper inflations since then. China was first because it was the Chinese who invented paper money.

The stuff doesn't seem to hold its value...

[NUWAYNER]

01:07 AM on 04/02/2009

Apply for a TREASURY POSITION ASAP.

[Rainier Wolfcastle]

03:27 AM on 04/01/2009

A lesson you can take away from this as a business owner: If you set aside some of the profits during the boom times of high revenues and high growth, even just a tiny percentage, then when business slows you'll have a reservoir from which to continue paying those young people instead of having to lay them off. MBAs will tell you this is a shameful waste of valuable capital, and they would be correct, but it is also the right thing to do.

[frisbeeredcat]

02:39 AM on 04/01/2009

After sitting here and reading all these posts I'm just amazed how the women posters sound so compassionate, understanding, and encouraging, while the men are looking to blame, act as if it were Nannette's own fault, telling her to get over it, and suck it up. What's with these guys! I detect a lot of anger, uglyness, and in general ill feelings. Guys, instead of blaming and putting everyone down and living like it's all dog eat dog, grab what I can, _ _ _ _ everyone else, have some heart. The only ones to get us out of this mess is us, working together. The government is us! We must make it move forward and I believe working together is better than the blame game, which accomplishes nothing.

[NUWAYNER]

12:53 AM on 04/02/2009

"DOG EAT DOG..FISHY EAT FROG...AND I ..."- BON SCOTT

[Dayahka]

07:03 PM on 03/31/2009

You are probably the exception, not an exception, the exception. If you look around you, you will find that many companies are simply using the situation to increase their profits and decrease their costs--while at the same time moaning and groaning about the "bad" times. Take a look at IBM, for example, that just cut 5,000 on top of another 5,000 it cut earlier, little by little so as not to have to "report" to the government, then sends 10,000 jobs to India and other developing nations, then cries and cries about the need for stimulus monies, all the while paying their CEO and other managers hefty salaries, bonuses, and stock options. Look at the banks that have done the same thing, increasing salaries and paying huge bonuses to people who basically failed in what they did. There is no accountability in this system of immoral capitalism, no sense of responsibility. Even one of the chief architects of this debacle, Alan Greenspan, says he had nothing to do with it! The system is rotten to the core. Bailing out the rich at the expense of the poor is just a sign of this gross immorality.

[DoctorDoctor]

12:18 PM on 04/01/2009

you're absolutely wrong. we're talking about a small, closely held corporation, not ibm. nothing's harder than cutting back the very people whose labor and talent have made your company successful. nothing. nothing. nothing. and even the big companies are so afraid of confronting their own failure they're starting to lay people off by email. they're not only stupid, they're cowards. but you're wrong. desperately wrong --- you should be ashamed of yourself.

[NUWAYNER]

12:52 AM on 04/02/2009

An APPLE A DAY keeps the doctor away...ESPECIALLY ONE THAT IS GUILTY OF MALPRACTICE.

[Skylarstar]

06:15 PM on 03/31/2009

I missed the whole "luxury as an entitlement" era. I still lived by the mantra I grew up with "live simply so others may simply live.' Those days of conspicious consumption for the few at the expense of the many are gone. Most people haven't caught on to the reality that we can't go on consuming the earth's wealth without disasterous consequences. The only true recovery we're going to see is the earths.

I guess I will never know what it means to buy all the designer shoes I want. I had trouble enough just finding shoes I could afford. Somehow I don't feel I missed out on so much. Hard times are throwing so many people into a panic. What do hard times mean to someone who could buy anything s/he wanted? Did all you "luxury as an entitlement" folks ever wonder about the true costs of all those luxuries?

[NUWAYNER]

12:43 AM on 04/02/2009

NO.

[LadyBeryl]

04:05 PM on 03/31/2009

I'm sorry you had to experience this -- I did the same thing last week and hated it. I work for a big company and it is what it is.

A pink slip in 1993 woke me up. I was able to get another job in the same company but from that point on, I prepared to be fired at any time. I owed them no loyalty and always looked for a better opportunity. My company only owed me a paycheck for the work I performed -- nothing more. I've been with that same company for 27 years and hope to be offered a early retirement/lay-off package.

Too many people don't take responsible for their own careers and trust their employers. The key to economic success and a clear conscience -- work like a Republican but live like a Democrat.

[NUWAYNER]

12:42 AM on 04/02/2009

A TRUE REALIST.

[mostlyindignant]

04:04 PM on 03/31/2009

Amen to Elizabeth Schwartz. You gotta be the change you want to see and that does not mean extravagance during the high times and then deserting your workers when it gets a tad rocky. Sell one of your houses, cars, boats or whatnot and eat Lean Cuisine along with the rest of us in order to keep your wonderful loyal staff on board. Think about ways to create a new market. Design a jacket or a little dress that does not cost $365. Innovate. Don't just shrug your shoulders and say, ahhh well. To this point, I agree with portwes- corporate america, with a lot of help from GWB turning his head to corruption and greed, got us into this mess and we certainly are not going to depend upon AIG or GM to fashion some bail out that is going to benefit anyone but themselves. So if not the government, then who. Buck up Nannette, play the cards you were dealt and take a hint from Ms Schwartz. Don't whine, dig deeper and sell off a few of those assets, and be creatiive. Hint: reduce your own perks.

[live by the golden rule]

04:02 PM on 03/31/2009

Put your energy into doing something we need-- a nonprofit that helps people, a school, a scholarship fund for nurses, raising funds for medical research--- let those enthusiastic young people go back to school and become medical researchers, nurses, teachers. Don't devote your life and creativity to making things for the self indulgent. Even if you were wildly successful doing that, it meant nothing at all.

[nico89]

07:23 PM on 03/31/2009

"Even if you were wildly successful doing that, it meant nothing at all."

- live by the golden rule's remark is insensitive and horribly judgmental.

A designer of clothing or a designer for any other accessory studies and practices their craft so as to provide a means for others to express themselves and find a connection in the outside world.
Not all designers work to sell thousand dollar clothes, some of these designers actually help make affordable fashion for the likes of K-mart, Walmat, Walgreens etc...etc...

I'm not sure what 'live by the golden rule' does for a living that would make it acceptable for them to judge another with such disregard - the only thing that I notice in the comment made was a smug sense of superiority hoisted on a horse of jealousy and personal frustration.

[NUWAYNER]

12:40 AM on 04/02/2009

Put your energy into what ever trips your trigger.

[Tankmaster]

03:27 PM on 03/31/2009

" Why did I think it was normal to buy as many designer shoes as I wanted or dinners out for insanely large groups. "

And I'm sure it didn't stop there...

Looking back is exactly what's needed. As this economy starts to recover ( and it will ) I hope you will remember these feelings of contrition. The old cliche' is true - you are only as good as your people. If you had saved money and invested in your people during the good times, you would of survived this downturn much better. As the saying goes: if we do not remember the past, we are doomed to repeat it in the future.

[JimVA]

03:15 PM on 03/31/2009

We all seem to have made mistakes but the critical flaw was lack of leadership and oversight at the top (Bush/Chaney and gang). Instead of watching out for us, we were told to buy hummers, live in McMansions, and give our social security over to the private sector (imagine if that had passed!!!) Thank god we finally have someone in office willing to do the hard work of governing. And yes, Nanette, government can help us out of this mess that was created by the lack thereof.

[Jane88]

03:03 PM on 03/31/2009

What I think is sad is that you think the government, Republican or Democrat, is going to lead us out of this.

[portwes]

03:23 PM on 03/31/2009

Something this massive could have only been prevented by government that had the authority to regulate and keep individual and corporate greed in check.

Something this massive can only be solved by government now doing the right things. The Depression was not overcome by individuals or corporations, it was solved only by the one entity that had the authority and resources to pull it off: the government (and one controlled by progressive and liberals).

That's not to say that government WILL solve it, but you're mistaken if you think anyone or anything else can.

[NUWAYNER]

12:37 AM on 04/02/2009

What is "sad" is you think that it is sad that someone else can think.