They Were Fired. What This CEO Did For Them Will Restore Your Faith in Humanity

OkCredit CEO's Empathetic Layoff Approach Praised

https://www.linkedin.com/posts/harsh-pokharna_harshrealities-activity-7313063619171106817-sjJi?utm_source=share&utm_medium=member_android&rcm=ACoAADQH0WQBrgpbgBaIqTgwvKdxDh9Ffj7mtHU

In a refreshing contrast to the often impersonal layoff procedures in the tech world, OkCredit CEO Harsh Pokharna has garnered widespread praise for his compassionate handling of a difficult situation. Earlier this year, Pokharna's Bengaluru-based company had to let go of 70 employees. Instead of resorting to cold emails or abrupt dismissals, OkCredit prioritized clear communication and employee well-being.

“Eighteen months ago, we laid off 70 people,” Pokharna shared on LinkedIn. “We were burning too much. Hired too fast. It was our mistake. And we owned it. It was one of the hardest things I’ve done as a founder. But we tried to do it the right way.”

A People-First Approach to Layoffs

Pokharna detailed the company's commitment to supporting its departing employees. Each individual was spoken to directly, with a clear explanation of the reasons behind the layoff. OkCredit also provided a three-month notice period, giving employees ample time to find new opportunities.

Beyond the extended notice, OkCredit actively assisted in job placements. The company leveraged its network to provide referrals, introductions, and job leads. This proactive approach proved highly successful, with 67 of the 70 employees finding new positions before their notice period ended. For the remaining three, OkCredit offered an additional two months' salary as support.

Setting a New Standard for Tech Layoffs

Pokharna's post resonated strongly on social media, sparking conversations about ethical leadership and the importance of treating employees with respect, even during challenging times. He contrasted OkCredit's approach with the impersonal methods employed by some tech companies, where employees are informed of job losses via email. “That’s inhuman,” he asserted. “Yes, layoffs happen. But how you handle them says everything about your culture.”

His sentiment was echoed by other industry leaders. One CEO commented, “Respect for handling it the right way. More leaders should follow this example.” A startup CFO added, “It's sad how many companies treat people so badly during layoffs. I think everyone deserves to be treated with dignity, especially when things are hard. That kind of respect really matters. You did great.”

Key Takeaways:

• Prioritize direct and transparent communication when conducting layoffs.
• Provide a reasonable notice period to allow employees time to transition.
• Actively assist with job placement through referrals and networking.
• Treat departing employees with dignity and respect.

OkCredit's experience serves as a powerful reminder that even in difficult situations, a people-first approach can make a significant difference. Harsh Pokharna's leadership has set a commendable example for the tech industry, demonstrating that empathy and ethical conduct are paramount, even when making tough decisions.