Southwest CEO notifies of layoff with focus on culture; Disney renames ERGs

Plus, a new study reveals Gen Z’s trust in both humans and AI at work.

By Sean Devlin
Feb. 21, 2025

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. Southwest CEO thanks employees in memo about first-ever layoff

Southwest Airlines is conducting a major layoff for the first time in its more than half a century of history. The cuts, which affected 15% of the total workforce, came amid an effort by the airline to cut half a billion dollars in spending.

Southwest’s leadership had the following to say about the move in a public-facing statement:

“This decision is unprecedented in our 53-year history, and change requires that we make difficult decisions. We are at a pivotal moment as we transform Southwest Airlines into a leaner, faster, and more agile organization,” said Bob Jordan, President, Chief Executive Officer & Vice Chairman of the Board of Directors. “I arrived at this decision thoughtfully and carefully, knowing how hard it will be to say goodbye to colleagues who have been a significant part of our Southwest Culture and accomplishments. I’m grateful to all Southwest Employees who have shared in our legendary history and to those that will guide us into the next era of Southwest Airlines.”

The statement was notable not just for its recognition of outgoing employees and their impact to the legacy of the brand, but the fact that culture is the cornerstone of what will carry the company forward.

You can’t just stop the comms process with the layoff itself. There will be people left behind who have teams to rebuild and managers who need to talk to their reports about what it means for them. A comprehensive layoff comms plan should function more as a roadmap than a simple statement, and the key to that is messaging about what the impacts mean for business health going forward for current and future employees. Define the audience, what they need to know and how it’ll impact the organization. You can then draw a branching tree of messaging based on response and reaction.

But while Southwest’s brass affirmed that they’re a people and culture-first company amid the job cuts, some employees felt differently.

According to WFAA:

Steve Cosgrove, publisher of Airways magazine, said employees were struggling to cope with the uncertainty after layoffs were announced.

“I mean they were crying, their voices were breaking over the phone because they don’t know if it’s going to be the one-year employee or the 38-year employee that’s going to get laid off,” Cosgrove said. “It’s really shattered the culture there.”

You can debate the effectiveness of the execution, but it is notable in Southwest’s statement that it puts culture and people at the forefront of its comms process.

When you’re charged with conducting layoff communication, it’s important to address the impacts on the people that make up your culture and the reasoning for the move. Jordan’s message does acknowledge that the move will simultaneously impact the company’s culture adversely in the short term, even as he explains the long-term benefits. It ticks those two boxes.

Keep clarity and transparency at the top of your comms priority list while focusing on people impacts, and you’ve got a formula to navigate tough announcements like this one.

2. Disney refocuses DEI around business outcomes

As part of a larger trend of DEI cutbacks and reworkings amid the second Trump administration, Disney is reimagining its own efforts. In an internal memo obtained by Axios, Disney CHRO Sonia Coleman shared that the shifts include:

Among the changes is renaming its “Diversity & Inclusion” performance factor that helps determine executive pay to “Talent Strategy” and shifting it to be more closely tied to business performance. The company is also ditching its “Reimagine Tomorrow” initiative that focuses on underserved communities and is adjusting content warnings on dated or controversial titles.

In addition, the company is renaming its Business Employee Resource Groups to Belonging Employee Resource Groups. This transition began in 2024 and is aimed at improving the workplace experience of Disney employees.

The reworking of these processes and resources is reminiscent of McDonald’s earlier this year – changes that adjust inclusion efforts to be more business-centric for Disney, but don’t abandon inclusion efforts for employees. It’s important to note that Disney CEO Bob Iger called for the company to get back to focusing on its entertainment roots and away from social messaging, and this move aligns with that thinking. Disney’s messaging strategies are also reminiscent of McDonald’s post-shift, with a heavier focus on belonging.

Even amid major political shifts, Disney is hedging inclusion within its business goals and cultural values Disney to keep some resources for employees. When you’re charged with communicating these changes, use your company’s mission and values as your north star. Keep your communication in a voice and tone that’s familiar to your employees and you’ll establish the base for a consistent messaging going forward that they recognize as part of the company’s culture, no matter the changes at hand. Disney did this by leaning into its status as a major business player in the entertainment world and tying its inclusionary measures back to that reality.

3. Study: Gen Z employees trust AI more than people at work

The rise of generative AI has led to much speculation over just how impactful the tech will have in employee’s work lives. According to a new study, Gen Z has gotten so comfortable with AI at work that a good chunk of the generation trusts the tech more than their managers with work-related issues.

The study by Pearl.com found that 41% of Gen Z respondents trust AI more than people, and 50% of Gen Z workers felt more comfortable going to a generative AI platform with a work issue as opposed to a manager or colleague.

From a communicator’s perspective, the biggest issue at hand here lies within trust. You need to make abundantly clear to employees of all generations that there are resources to ask questions and seek help at work. That comes down to equipping managers with the right comms skills to know how to respond to different lines of questioning and putting reminders in your messaging that trust is a major part of company culture and colleagues can help when needed. It’s worth recognizing that AI is a new source of knowledge where people can go get their answers, and communicators should acknowledge that fact. But reaffirm that there are also people in the organization that can provide support as well.

4. How about some good news?