In A TikTok Era, Companies Shoot First: Navigating PR Nightmares in the Age of Social Media
Twenty pharmaceutical employees found themselves locked out of their company’s headquarters Tuesday morning. Initially, they thought it was another door malfunction, something that had happened a few times before. However, when they arrived at their desks, they were stunned to find their access to the company’s system denied. Initially dismissing the first incident, they soon realized they had been abruptly laid off without warning or explanation.
Still in shock, the employees, led by their division director, stormed into the vice president’s office demanding answers. They received envelopes containing a brief explanation of the company's decision to downsize, citing vague economic reasons. Inside was the upcoming weeks’ paycheck, hardly enough to soften the blow.
As security ushered the stunned and angry employees out, two of them immediately took to social media to voice their outrage. By noon, the pharmaceutical company was trending on TikTok. One of the posts by a former employee went viral, accumulating 95,000 likes, 1,035 comments and 276 shares in just a few hours.
This mishandled layoff swiftly evolved into a crisis, highlighting a disconnect between outdated corporate practices and the heightened expectations of today’s socially conscious workforce. In the past, such layoffs were commonplace — employees were blindsided, communication was impersonal, and trust was shattered. However, the landscape has shifted dramatically since the pandemic of 2020, which underscored the fragile nature of job security and amplified public scrutiny of corporate ethics.
The 2020 pandemic showed how easily jobs can disappear and how important workers are. People started paying more attention to how companies treat their employees. At the same time, movements like Black Lives Matter and the push for gender equality grew stronger. These movements made everyone think more about ethics, especially how companies handle their employees.
“Today's social climate values transparency and open communication,” said Dr. Amy Edmondson, professor of leadership and management at Harvard Business School. “Employees expect honesty and engagement from employers, unlike any time before.”
Supporting this sentiment, a 2020 survey by Weber Shandwick revealed that 76% of employees feel comfortable using their personal social media to defend against unfair treatment, while a 2021 study by SHRM noted that 36% of organizations suffered reputational damage from employee social media posts.
To get ahead of a crisis caused by mishandled layoffs and employee grievances aired on social media, the pharmaceutical company had to act quickly and adopt new-generation public relations principles that reflect today's social climate. Here is how the company responded:
1. Immediate Response and Acknowledgment:
Within 24 hours of the viral incident, the pharmaceutical company’s CEO responded publicly, acknowledging the crisis and expressing empathy for affected employees on the company’s social media page and through trusted pharmaceutical-focused publication outlets. The CEO provided a detailed explanation of the layoffs, corrected misinformation circulating online, and admitted to using outdated layoff procedures, issuing a formal apology.
2. Engagement and Listening:
Through a live-streamed video, the company's leadership engaged directly with employees, stakeholders and the public, addressing their concerns and reiterating a commitment to transparency and fairness.
3. Rebuild Trust and Reputation:
Proactive measures were announced, including partnering with outplacement services to support laid-off employees in their career transitions and ensuring timely severance payments.
4. Next Steps and Commitment:
Acknowledging shortcomings, the company's top executive pledged to improve transparency regarding its financial health and vowed to involve employees in future decision-making processes. Future layoffs would be communicated to employees in a timely and respectful manner, mitigating similar crises.
By implementing these steps, companies not only mitigate the immediate fallout of a crisis but also strengthen their relationships with employees and stakeholders, bolstering resilience and reputation in today's fast-paced and socially scrutinized business environment. However, to truly rebuild trust and avoid future PR nightmares, the pharmaceutical company must follow through on its promises, ensuring that actions align with their commitments to transparency and fairness.
In conclusion, navigating crises in the TikTok era requires swift, proactive, empathetic and transparent communication strategies. Companies must adapt quickly to meet the evolving expectations of employees and the public, safeguarding their reputation and fostering trust in an era where every misstep can go viral.
Don’t let mishandled layoffs become a public relations disaster. In today’s social media-driven world, transparency, empathy, and proactive communication are critical to protecting your brand and maintaining trust with your employees. Avoid the pitfalls of viral backlash—get expert guidance on managing downsizing with integrity. Schedule a consultation with us today and ensure that your workforce transitions are handled with care and compliance, preventing costly reputation damage in this fast-paced digital age.
