Jack Dorsey announces layoffs for Block; Zillow touts its Cloud HQ work model

Greetings, comms pros! Let’s take a look at a few news stories from the past week and see what we can learn from them.

1. Jack Dorsey informs Block employees of job cuts

Financial services company Block is cutting nearly a thousand jobs, and Block CEO (and former Twitter head honcho) Jack Dorsey outlined the reasoning for the layoffs in an email obtained by TechCrunch. Dorsey went into detail about what roles were affected and the reasoning for the cuts – though this remained vague. He said there wasn’t any one financial reason for the move and AI wasn’t a factor. Instead, the layoffs aimed to “flatten” the organization for more agility.

At the end of the note, Dorsey wrote:

this is the toughest part of my job, and I fight hard against any of these considerations. we must have a very high bar of correctness for us to take any action, which takes iteration and time to get right. i always balance this with the fact that everyone here, and those that are departing, has equity in our company. it’s my job to increase that value. we believe this will help us focus and execute better to do just that.

we’re working to give clarity to everyone as quickly, with as much context and support, as possible. you’ll receive an email soon about what this means for you. if there are areas where you think we could do better, please send me a note. direct feedback makes us better, and I always act when it makes sense.

thank you to all those leaving us. i am grateful and appreciative for you and your work, which has built us up to this point. we will continue to honor that by increasing our value to our customers, and therefore to all of our shareholders, including you.

Credit where it’s due—as a leader, Dorsey handled the communication of the move relatively well by empathizing with the plight of his affected employees. He also mentioned details about how laid-off staff will be notified and opened the door for feedback.

Leadership communication during a major change isn’t just about stating facts from the pulpit. It’s all about humanizing the people behind the work and galvanizing that into a more positive work culture. Dorsey’s job in this situation isn’t easy, but by communicating in a fashion that speaks to his employees as adults and equals, he’s setting a good example of how leaders can announce layoffs.

2. Zillow’s chief people officer defends ’Cloud HQ‘ remote work model

Return-to-office mandates are becoming increasingly common, especially after the federal government moved to end remote work earlier this year. But you won’t see Zillow on a list of companies conducting an RTO program anytime soon — not as long as it’s got it’s Cloud HQ policy in place.

Zillow’s chief people officer Dan Spaulding talked about the remote work policy as something they do because their employees are mature enough to handle such an arrangement.

“We like to think we hire adults. We like to treat people like adults.”

Spaulding told Fortune that the Cloud HQ program considers the company’s headquarters to be remote. He said that while remote work is Zillow’s preference, it adds more meaning to how teams communicate and interact when they do meet up in person. He added that the move has paid dividends for employer reputation and retention, with applications increasing fourfold since the initiative began in the wake of the COVID-19 outbreak in 2020.

“I’ve worked in HR for 25 years, I’ve never seen the demographic shift that I’ve seen since moving to Cloud HQ,” says Spaulding. “We believe that’s a differentiator for us in terms of not just attracting those employees to Zillow, but retaining them for a longer period of time.”

Zillow is notable not just because they’re remote in the face of the RTO push, but because of how they talk about it. Spaulding’s tone defending his employees as people who can handle remote work and how that directly correlates to making Zillow a stronger company shows that when employees have the trust of leadership, it’s likely to build a stronger culture and company.

When talking about a concept like RTO, it’s easy to get wrapped up in buzzwords like “collaboration” and “culture.” But Zillow serves as a great example of how comms pros can talk about remote work or any larger employee-centric concept. Talk to your people like the mature adults they are. When you communicate trust in them, they’re likely to give it back — and that’s a recipe for boosting your reputation as an employer. Spaulding effectively communicates that remote work is a positive for the business at Zillow by keeping the company’s best people in place with a major perk.

3. Report: Employee engagement is key for a healthy bottom line 

A new report drew a connection between employee engagement and better business results.

According to research from gohappy’s State of the Frontline Worker Report, the top 25% of scored businesses for employee engagement saw significantly less turnover (14%) than the other businesses in the report. Additionally, the top quarter of companies with high employee engagement ratings saw savings related to onboarding that contributed to a healthier financial state.

Everything an internal communicator does has ultimate ties back to the business. Even something as simple as thanking employees after completing a tough project can pay later dividends — both with team cohesion and dollars and cents. Maintaining close touchpoints with employees and keeping them aware of what’s going on with the larger company helps foster trust, and internal communicators should seek to be the tie from the larger company directly to employees.

If you’re interested in learning more about the cutting edge of employee engagement and communications strategies, sign up for our Employee Commununications and Culture Conference in Chicago this April 9-11.

4. How about some good news?

• A chemist invented a hydrophilic golf ball that can adapt to course weather conditions.
• A mysterious painting of an African prince turned out to be an original Klimt work.
• Gene therapy cured a New York man of sickle-cell disease.
• Ragan Training is great for communications pros to find inspiration and resources.
• You should be rewarded for your work. Find out how to earn an award here!

Have a great weekend comms all-stars!

Sean Devlin is an editor at Ragan Communications. In his spare time he enjoys Philly sports and trivia.