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Cheryl Ways and Agilent Technology's Layoffs Case Study

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Cheryl Ways and Agilent Technology’s Layoffs
Cheryl Ways, a 30-year-old IT professional, took a call at around 9 p.m. on October 15,
2001, from her husband, who rang complaining about her still being at work and asking her when she was coming home. Most of her co-workers had already left for the day, but she worked on for another half hour before shutting down her computer and heading out of Agilent Technology’s empty building. What’s remarkable about this story is that
Cheryl had been told three weeks earlier that she was soon going to be laid off. So what was she doing, still working hard for the company putting in long hours just before being finally let go?

Ways was one of 8,000 staff at Agilent Technology who were cut from the firm during 2001 and one of 2 million people throughout corporate America who lost their jobs that year. A technology and electronics manufacturer and maker of measuring and testing equipment, Agilent Technologies was spun off from Hewlett-Packard during
1999. Hewlett-Packard was known for its “precept that workers will give their best if they’re treated honestly and listened to” and this philosophy was emulated by Agilent.
Maintaining an open style of communication through e-mails, meetings, and other media, senior management openly acknowledged that downsizing went against the embedded
HP way of caring for staff.

Prior to commencing downsizing, Agilent tried other solutions to their business woes. Faced with a 23 percent decline in sales, a sharp fall in orders, and a falling share market, the company put in place a pay cut of 10 percent to save costs. This was seen as a temporary measure, with Agilent’s CEO Ned Barnholt predicting a “slow and gradual recovery.” The company tried other cost-saving measures such as reducing external consultants and hirings and calling on staff to limit travel and other

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