> "Very few people know that I had to do that thing which no business owner should ever do – lay people off. And I've had to do it twice."
The difference in how other countries view laying people off, contrasted with the US labor market is worth highlighting.
I understand the arguments about how at-will employment brings flexibility and opportunity for both employers and employees but seeing a CEO feel actually responsible for his employees in a downsizing is refreshing.
Yes. In one of his interviews he says when they downsized, he and his employees went for dinner where he cried his heart out and apologized to the 20 part timers(!) he had to lay off. And that he was able to hire three of them back when his business took off again.
I remember reading that some Japanese electronics company, I want to say it might’ve been Panasonic, kept the TV wing of their business going for many years after it ceased to be profitable because they didn’t want to displace all the employees working in it.
Japan has problems with work culture (off the books overtime, obligation to go drinking with coworkers, etc) but the increased corporate loyalty towards employees isn’t one of them.
I don't think it is, not for a business such as the one described in the article. I'm currently living in Japan, and in a relatively short amount of time I've personally met several business owners who might have acted similarly, sincerely.
There is a large amount of small and niche businesses here which are not profit-driven.
It's up for debate how productive Japan's companies really are.
Studies show it is one of the least productive/efficient among developed economies, with all the unnecessary meetings, lack of quick decision-making, and outdated processes.
The difference in how other countries view laying people off, contrasted with the US labor market is worth highlighting.
I understand the arguments about how at-will employment brings flexibility and opportunity for both employers and employees but seeing a CEO feel actually responsible for his employees in a downsizing is refreshing.