IT and Business Insights for SMB Solution Providers

Video Posted: When You Have to Downsize

No one wants to fire or lay off employees. But the reality is that employees are your largest expense. If you have a severe cash flow problem, there may be no other way to survive.

Here are a few tips for dealing with this sad situation - with class.

(View on YouTube:

Part Time: If possible, move to part-time workers. This can save you some money, add flexibility, and keep your employees with you (at some level).

If you don't have any choice, you may have to let someone go. Remember: Every change involving employees affects your culture.

Do it with class: Don't fire someone Friday at 5PM. Be as kind as possible under difficult circumstances.

Be consistent: Treat everyone the same when you let them go. Remember that the remaining employees will be watching.

Finally, you need to make the best of a bad situation with your remaining employees. If you have some spare time inside your company, make sure you manage them effectively. Set goals and measure the results.

Manage well: Set measurable goals - and measure them! Remember, some people are not built to work from home. Find tip sheets on working from home. Encourage employees to be effective and productive while working from home.

This is also a great time to work on training - especially on the skills they need going forward (such as Azure Active Directory). What will your company be selling at the end of 2020? Make sure you're trained on that!

Sherweb's YouTube channel is here:

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FTC note: I was compensated by Sherweb for the creation of this video, but received no compensation for this blog post.


About the Author

Karl W. Palachuk, is a technology consultant, author, speaker, trainer, and coach. He is the author of fifteen books. He has built several successful businesses, including two managed services companies. His books include Managed Services in a Month and The Network Documentation Workbook. Karl is a frequent trainer and speaker in the SMB Community. His popular blog can be found at He has more than twenty years experience as an I.T. professional and serves on advisory panels for several hardware and software companies.

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