By Guest commentary Monday, March 10th, 2025

By Vlad Vaiman

During a recent earnings call, Bernard Arnault, CEO of LVMH, created a stir by referring to layoffs at Tiffany & Co. as “promoting outwards.” 

The expression used by Arnault closely parallels Mark Zuckerberg’s terminology at Meta and highlights a dangerous leadership trend that treats workers as disposable resources instead of acknowledging their fundamental importance to any organization.

Corporations often use terms like “non-regrettable attrition” or “unregretted departures” to exercise linguistic gymnastics and make mass layoffs sound less harsh. 

These corporate monikers gloss over the harsh reality of job termination while disregarding the personal and professional damage inflicted on employees. 

Employees who face job termination experience financial instability and career disruption while suffering emotional distress which corporate terminology fails to obscure.

Meta, Amazon, and Tiffany & Co. have all adopted such language to justify their workforce reductions. 

Arnault’s explanation that a segment of the workforce at Tiffany & Co. failed to meet the post-acquisition demands, for example, shows insufficient dedication to nurturing their skills. 

These companies chose to terminate underperforming employees instead of building a supportive environment for them to develop new skills and meet expectations.

Based on my research into workforce management, I strongly discourage organizations from adopting short-term strategies that view employees as disposable assets. 

Organizations that use euphemisms when dismissing workers while ignoring the impacts of layoffs often destroy trust and morale and foster a culture of fear instead of one that supports growth and innovation.

Moreover, the phenomenon called “survivor syndrome” affects employees who stay after their coworkers have been let go. 

The remaining employees develop security-related anxiety while becoming disengaged from their work, as they sense their colleagues were undervalued which subsequently reduces their own commitment to the organization. 

This vicious cycle usually begins with top talent seeking new job opportunities which results in additional staff loss and overall organizational instability.

Such practices prevent employees from taking risks and offering creative solutions while keeping them from raising concerns which are essential elements for organizational success. 

When employees notice that performance standards shift unpredictably, and underperforming individuals face dismissal instead of improvement opportunities, they tend to limit their workplace contributions to essential tasks only.

Effective talent management should focus on developing existing employees instead of replacing them. 

My recommended sustainable approach incorporates employee development through upskilling and reskilling along with transparent communication and ethical leadership to enhance engagement. 

Companies should provide training and development opportunities instead of immediately dismissing employees who struggle to meet new expectations. 

This way, workers can adjust to changing responsibilities, while organizations stand to gain long-term resilience.

Also, organizations need to maintain transparency regarding performance expectations and potential challenges while developing employee growth strategies. 

Employees who understand their responsibilities can advance toward fulfilling them with confidence. 

Additionally, when workers feel appreciated and heard, their workplace environment develops into a collaborative space where loyalty flourishes. 

So, it is crucial for businesses to gather employee feedback and engage them in decision-making processes instead of treating them as replaceable resources. 

Furthermore, leadership must place ethical considerations at the forefront when making workforce decisions. 

Management must treat layoffs as a last option rather than a standard reaction to adjustments in market conditions or new corporate strategies.  

Businesses that regard their workforce as disposable can definitely achieve immediate financial benefits, but they do risk significant long-term harm. 

Companies that conduct mass layoffs without sufficient support systems for affected employees face criticism from both their internal workforce and external stakeholders.

In turn, a negative perception of employee treatment can irreparably harm a company’s brand reputation. 

The age of transparency now allows former employees to post their experiences on LinkedIn and Glassdoor which results in the rapid spread of negative publicity. 

Both potential hires and customers take notice which directly affects a company’s ability to maintain customer loyalty and secure top talent.

I recommend that organizations adopt a people-first talent management strategy which views employees as valuable assets that need nurturing, instead of treating them as expendable liabilities. 

When organizations focus on employee development and ethical decision-making while promoting internal mobility, they create an engaged and dedicated workforce that drives innovation and achieves long-term success.

Leaders need to keep in mind that workforce decision-making language holds significance, while the underlying decision intent proves even more crucial. 

Businesses that employ euphemisms to hide layoffs may temporarily safeguard their stock prices but face potential employee alienation along with reputational harm and threats to their long-term success.

Effective leadership does not come from disguising tough realities but from choices that support business success and ensure employee well-being. 

When organizations treat their employees with respect and provide development opportunities, they will demonstrate greater engagement and commitment leading to growth and innovation. 

So, instead of “promoting outwards,” organizations should focus on “developing inwards.”  

And smart organizations do exactly that.

• Vlad Vaiman is an associate dean and professor at the School of Management of California Lutheran University and a visiting professor at several premier universities around the world.