# The ripple effect on remaining employees

- **Episode:** [12](https://agents.truthliesandwork.com/episodes/12.md) (2022-11-15)
- **Type:** other
- **Tags:** layoffs, remaining-employees, impact
- **Time:** 52:02–54:17 (start 3122s)
- **Listen:** [https://truthliesandwork.com/12?t=3122](https://truthliesandwork.com/12?t=3122)

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[52:02] Al Elliott: So this again comes from anecdotal evidence that I gathered during my interviews. The moment you do the ripping of the plaster exercise, you're basically sending a message to the people who remain. That we've reduced our cost base, which means our runway has increased to 3 years or 4 years or whatever, which will easily see us through the crisis that we are in today. And the markets are probably going to turn around in 6 to 9 and 12 months' time. So one of the things I have written in the book is how the CEO addresses the remainders and how they go about telling them or giving them the comfort. That we can now start innovating. And one of the things that I think it was a startup CEO from India who mentioned that as soon as we ripped off the plaster and the teams knew that they're kind of in some sense out of danger, they started being a lot more proactive and more innovative because they knew that That could be new directions the firm can take because there's a lot more capital available. Of course, not spending crazily, but they had the mind space to almost unleash themselves in more creative ways within the organization. I think that because a lot of bureaucracy would've been removed in the organization by just shedding fat in some sense. So I think that was a Yeah. Really good insight I got through the process. Yeah. So when you kind of get more leaner and meaner and more efficient through crisis, it's a good thing for the organization in general, both from a P&L perspective, but also from employees who remain in the organization. They feel that they've done something right to stay or to be part of the people who've been kept in the organization despite the crisis, and it only helps them in some sense. So Alan's clearly saying that this is a big opportunity. There's a pivot, there's a turnaround, there's a period of testing. You've got a product genius at the helm. But let's see if Candice thinks the same thing