Carrier Layoff Video Goes Viral

In a video taken by a Carrier employee, we see bad news delivered first hand. An executive announces that the furnace and heating equipment factory will move to Mexico-eliminating 1,400 jobs at the Indianapolis plant.

Understandably, employees are upset. Represented by the United Steelworkers union, they receive good pay, including overtime. Employees seem to like working at the factory, despite long hours and what a New York Times article calls "painstaking work." As one employee said, "It's pretty cool working there. And when you do it for 60 hours a week, people are like family."

Akhil Johri, Carrier's CFO says that factory moves and job cuts "painful," but essential "for the long-term, competitive nature of the business and shareholder value creation. We feel good about being able to execute on that." The company is concerned that it will go the way of the auto industry, unable to compete with international manufacturers.

Robert McDonough, a senior executive at United Technologies (Carrier's parent company), said, "This was a really tough decision. This will have a real impact on folks we care about and this community. We're an American company, but we compete globally."

Still, UT promoted the decision during a recent meeting with shareholders and analysts, who typically react positively to such news. As the NY Times explains, 

"Wall Street is looking for United Technologies to post a 17 percent increase in earnings per share over the next two years, even though sales are expected to rise only 8 percent. Bridging that gap means cutting costs wherever savings can be found."

UT CEO Gregory J. Hayes is feeling the pressure of stock performance, and his 2015 bonus was cut by 50%. But, as article says, "with a total compensation package of $5.7 million, he made more last year than Carrier's factory workers could earn in several lifetimes."

Discussion Starters: 

• What's your view of the decision? Consider both UT and the employees' perspective. 
• Assess what we see of the Carrier meeting. How could the company have delivered the news differently? What, if anything, would change the employees' reactions? 

250 Men's Wearhouse and Jos. A. Bank Stores to Close

Tailored Brands has announced the closing of about 250 Men's Wearhouse and Jos. A Bank stores. The men's clothing stores aren't producing expected profits, and a recent change worsened the situation. Jos. A Bank held a "buy-one-get-three-free" promotion for years, which annoyed consumers, but eliminating the sales strategy lost comparable-store sales 14.6%. 

In a press release on its website, Tailored Brands explained the decision with quotations from CEO Doug Ewert.

"While our fourth quarter and full year results were consistent with our revised guidance, we remain very disappointed by the weak Jos. A. Bank results.  Our transition away from unsustainable promotions has proven significantly more difficult and expensive than we expected.  We do, however, remain confident that Jos. A. Bank offers a longer-term opportunity to profitably grow market share in the menswear business. Additionally, our Men's Wearhouse, Moores, and K&G brands continue to perform well, with profitability in line or ahead of our expectations. . . . 

As part of our store rationalization program we plan to close approximately 250 stores during fiscal year 2016. The store closures fall into three categories. First, we expect to close 80 to 90 full-line Jos. A. Bank stores which we believe have limited potential for meaningful profit improvement. Second, we will close all Jos. A. Bank (49) and Men's Wearhouse (9) outlet stores. We have determined that outlet stores, which collectively were not profitable, are not sufficiently differentiated enough from our core offerings and have not resonated with our customers. Lastly, we intend to close between 100 and 110 MW Tux stores. These closings are a continuation of our strategy of migrating tuxedo rentals to full line stores and reflective of our new partnership with Macy's, Tuxedo Shop @ Macy's.  We have refined our Tuxedo Shop @ Macy's rollout schedule and now plan to open 166 stores in 2016 with the balance of 122 stores to be opened in 2017."

Ewert did express his confidence in the remaining stores: "We do, however, remain confident that Jos. A. Bank offers a longer-term opportunity to profitably grow market share in the menswear business."

Discussion Starters: 

• Analyze the company's statement. Looking at the organization, style, tone, and so on, which principles of business writing are followed, and which are not?
• How will employees react to this news, particularly after the decision to end the suit promotion?

More Takata Recalls

Parent company Daimler is recalling 840,000 vehicles, including 705,000 Mercedes-Benz cars. The statement title downplays the issue and blames Takata: 

"Daimler recalls approximately 840,000 vehicles in the United States as a precautionary measure due to potentially defective airbag models from manufacturer Takata"

In its statement, the company gives expenses data and assures us that the financial impact is minimal:

"Daimler AG points out that both the dividend proposal and the employees' profit participation for the successful year 2015 as well as the earnings expected for financial year 2016 remain unchanged." 

Daimler's positioning works well for the audience, and blaming Takata is a good move. The supplier is already in big trouble, with testimony from an engineer that the company hid airbag problems by changing test data and hiding parts, all while executives assured safety. During the deposition, the employee said, "'I had the data, but I wanted to go look for those parts. But when I went to look for the parts, because some of the parts had come apart, they were no longer available. They had been discarded.''

Ten deaths have been reported because of failing Takata airbags. In addition to Daimler, Honda, GM, Toyota, Volkswagen, Ford, and other vehicles have been recalled totaling about 24 million-so far.

Image source.

Discussion Starters: 

• Assess Daimler's statement about the recalls. Who are the primary and secondary audiences, and how well does the company address each? 
• Research Takata and look for current news. What's your prediction for the company and its executive team? 

Apple Reports Disappointing Results

On its Q1 earnings call, Apple reported slow iPhone growth and missed revenue targets. The Wall Street Journal summarizes results: "Apple said iPhone sales grew at the slowest pace since its introduction in 2007 for its first fiscal quarter ending in December." Business Insider, similarly, reports, "Apple's holiday-quarter revenue of $75.9 billion missed analyst expectations as well as the company's own guidance."

Of course, Apple's press release paints a different picture:

The Company posted record quarterly revenue of $75.9 billion and record quarterly net income of $18.4 billion, or $3.28 per diluted share. These results compare to revenue of $74.6 billion and net income of $18 billion, or $3.06 per diluted share, in the year-ago quarter. Gross margin was 40.1 percent compared to 39.9 percent in the year-ago quarter. International sales accounted for 66 percent of the quarter's revenue.

Our team delivered Apple's biggest quarter ever, thanks to the world's most innovative products and all-time record sales of iPhone, Apple Watch and Apple TV," said Tim Cook, Apple's CEO. "The growth of our Services business accelerated during the quarter to produce record results, and our installed base recently crossed a major milestone of one billion active devices."

Tim Cook did admit that the iPhone is increasingly expensive overseas because of foreign exchange rates.

Analysts don't seem too worried about the company's future. Of 14 analysts, 12 remain "bullish," while only two are "neutral."

Discussion Starters:

• Listen to the Q1 earnings call. How does the company handle the news?
• How well does Apple's press release summarize the results? Should anything else have been said in the release?

E. Coli Outbreak at Chipotle

An E. coli outbreak has caused Chipotle to close 43 stores in Oregon and Washington. The Center for Disease Control is investigating links between ingredients and 39 people falling ill. Fortunately for Chipotle, the CDC said it "does not have any information to suggest that Chipotle Mexican Grill locations in other states are affected by this outbreak."

The company issued a press release:

Chipotle Moves Aggressively to Address Issues in Washington and Oregon

Company voluntarily closes restaurants; replaces food; cooperates fully with investigation

DENVER--(BUSINESS WIRE)--Nov. 3, 2015-- On the heels of an E. coli incident that was linked to eight of its restaurants in Oregon and Washington state, Chipotle Mexican Grill (NYSE:CMG) has taken a number of immediate steps to assist investigators as they conduct their review of the incident in Oregon and Washington. Among the specific actions the company has taken since the incident began are:

• Immediately closing 43 restaurants in Oregon and Washington state out of an abundance of caution, even though only eight restaurants have drawn concern, while investigators search for a cause;
• Conducting additional deep cleaning and full sanitization of its restaurants in the area;
• Conducting environmental testing in its restaurants, and food testing in its restaurants and distribution centers in addition to testing being conducted by health department officials;
• Replacing all food items in the restaurants we closed, out of an abundance of caution;
• Batch testing some ingredients before resupplying;
• Continuing to help in the investigation; and
• Retaining two preeminent food safety consulting firms (including Seattle-based IEH Laboratories and Consulting Group) to help the company assess and improve upon its already high standards for food safety.

"The safety of our customers and integrity of our food supply has always been our highest priority," said Steve Ells, chairman and co-CEO of Chipotle. "We work with a number of very fresh ingredients in order to serve our customers the highest-quality, best-tasting food we can. If there are opportunities to do better, we will push ourselves to find them and enhance our already high standards for food safety. Our deepest sympathies go out to those who have been affected by this situation and it is our greatest priority to ensure the safety of all of the food we serve and maintain our customers' confidence in eating at Chipotle."

While no cause has yet been identified by investigating health officials, Chipotle continues to work swiftly and thoroughly with health department officials as they look to conclude this investigation.

The company's Twitter page has no mention of the closings.

Discussion Starters:

• Assess the company's press release. What works best?
• Should Chipotle include some of this news on its Twitter page? What are the arguments for and against this communication?

ESPN Layoff Message

These days, not a week goes by without a layoff message. The most recent is ESPN's, also posted on the organization's website.

The message is typical in some ways but not others. It expresses regret and focuses on future plans, yet doesn't mention the number of people leaving, which The New York Times reported at about 300, or 4% of the workforce. 

PR Daily describes the bulleted list as "jargon-filled," but we have certainly seen worse.  

Message from John Skipper to ESPN Employees

The demand for sports remains undiminished, though the landscape we operate in has never been more complex.

Our 36 years of continuous growth and success has been driven by our consistent willingness to reimagine our future, to embrace change and make the right choices for our business, including hard decisions that affect people who have been integral parts of our efforts.

Beginning today, we will be enacting a number of organizational changes at ESPN to better support our future goals – a process that will include the elimination of a number of positions, impacting  friends and colleagues across the organization.

We carefully considered and deliberated alternatives before making each decision.  The people who will be leaving us have been part of ESPN's success, and they have our respect and appreciation for their contributions.  We will be as supportive as we can during this transition, including providing a minimum of 60-days notice, a severance package reflective of their years of service, and outplacement benefits to help them find future employment.

These changes are part of a broad strategy to ensure we're in position to make the most of new opportunities to build the future of ESPN.  These ongoing initiatives include:

• Constant and relentless innovation, including integrating emerging technology into all aspects of our business.
• Enhancing our sales and marketing efforts with new tools and techniques that generate greater data, personalization and customization for our advertisers.
• Integrating our distribution efforts to better serve current and future distribution partners with our industry leading networks and services.

No matter how many times we've adjusted course to lead the industry over the years, the decisions affecting our employees are never made lightly.  It never gets any easier, but it's a necessary part of our continued strategic evolution to ensure ESPN remains the leader in sports as well as the premier sports destination on any platform.

I realize this process will be difficult – for everyone – but we believe the steps we are taking will ultimately create important competitive advantages for our business over the long term.  I sincerely appreciate your professionalism and continued support as we move forward to ensure the continued success of ESPN and assure sports fans everywhere the best is yet to come.

John 

Discussion Starters: 

• What key messages do you take from this announcement? 
• Do you find the bullets "jargon filled"? If so, what revisions would you make? 
• Why do you think ESPN broke tradition and omitted the number of people being laid off?

Twitter Layoff Email

As Twitter's new CEO, Jack Dorsey is taking quick action and laying off 336 people, which is about 8% of the company. Engineers are taking the biggest hit, but other departments will be "streamlined" too. Severance and other fees will cost the company between $10 and $20 million in the short term.

In his email to staff, Dorsey writes to avoid "corporate speak," which we see more in the company's 8-K filing: "The restructuring is part of an overall plan to organize around the company's top product priorities and drive efficiencies throughout the company."

 From: Jack Dorsey
To: All Employees
Date: October 13, 2015
Subject: A more focused Twitter

Team,

We are moving forward with a restructuring of our workforce so we can put our company on a stronger path to grow. Emails like this are usually riddled with corporate speak so I'm going to give it to you straight.

The team has been working around the clock to produce streamlined roadmap for Twitter, Vine, and Periscope and they are shaping up to be strong. The roadmap is focused on the experiences which will have the greatest impact. We launched the first of these experiences last week with Moments, a great beginning, and a bold peek into the future of how people will see what's going on in the world.

The roadmap is also a plan to change how we work, and what we need to do that work. Product and Engineering are going to make the most significant structural changes to reflect our plan ahead. We feel strongly that Engineering will move much faster with a smaller and nimbler team, while remaining the biggest percentage of our workforce. And the rest of the organization will be streamlined in parallel.

So we have made an extremely tough decision: we plan to part ways with up to 336 people from across the company. We are doing this with the utmost respect for each and every person. Twitter will go to great lengths to take care of each individual by providing generous exit packages and help finding a new job.

Let's take this time to express our gratitude to all of those who are leaving us. We will honor them by doing our best to serve all the people that use Twitter. We do so with a more purpose-built team, which we'll continue to build strength into over time, as we are now enabled to reinvest in our most impactful priorities.

Thank you all for your trust and understanding here. This isn't easy. But it is right. The world needs a strong Twitter, and this is another step to get there. As always, please reach out to me directly with any ideas or questions.

Jack

Not everyone is happy about Twitter's communication. An employee tweeted this:

Discussion Starters:

• Assess Dorsey's email as a bad-news message. How does it compare to other recent layoff notices?
• How do you think Twitter missed a communication with Bart Teeuwisse? Do you think everyone was informed this way? What else could explain his finding out by trying to access his account?

Air France Employees Angry About Layoffs

Air France announced 2,900 job cuts by 2017, and employees didn't react well. The company had asked pilots to take wage cuts, but they haven't agreed.

The head of HR for the company was pictured without a shirt, trying to get through a group of angry employees yelling, "A poil, à poil" (off with his clothes). In this photo, security officers are helping the executive escape. The head of Air France for Orly airport also had his shirt ripped by the crowd.

The airline union and parent company Air France-KLM denounced the employees' actions, and company officials said they would file a charges.

From IB Times, Business Insider summarizes similar employee situations in France since 2009. Employees at a Goodyear tire company held executives hostage for 30 hours rather than accept  1,173 job cuts. In 2009, employees at Caterpillar held executives hostage for a night after layoffs of 700 were announced.  

Image source.

Discussion Starters:

• Try to explain the employees' perspective given the news and the country's history.
• What do you think the management team will do now?
• How would such an event go over in other countries?

Layoffs at Whole Foods

Whole Foods just laid off about 1500 employees, or 1.6% of the workforce. In an interview with Fortune, Co-CEO Walter Robb explained the company's growth strategy. A statement on the company's website describes the decision as a cost-cutting measure to reduce prices and invest in technology, and Robb outlines the plan for employees:

"This is a very difficult decision, and we are committed to treating affected Team Members in a caring and respectful manner. We have offered them several options including transition pay, a generous severance, or the opportunity to apply for other jobs. In addition, we will pay these Team Members in full over the next eight weeks as they decide which option to choose. We believe this is an important step to evolve Whole Foods Market in a rapidly changing marketplace." 

Critics question how "generous" the severance is but admit that it's better than other retailers' beneifts. Mother Jones describes employees as "bitter," several have leaked their layoff letter.

 

View Part 2 of the letter.

Discussion Starters:

• Assess the layoff letter. Consider that it's an official document that employees are asked to sign.
• How well does Robb explain the rationale for the layoffs? Read the company's statement and watch the Fortune interview to decide.

Sheriff's News Conference About Oregon Shooting

A shooting at Umpqua Community College in Roseburg, Oregon, has left 10 people dead and seven injured. Douglas County Sheriff John Hanlin held a news conference to discuss the situation.

Following is my take on the statement: 

+ He is not polished, as you might expect from a sheriff just hours after such a shooting. He shows appropriate emotion for the situation and timing.

+ He says early on that the victims and their families are their priority.

- He could have told the public what they need to know: that the shooter is dead. (He was shot by police and then shot himself.) This might have helped assure people that they are safe. The media statement on the sheriff's website clearly states that the shooter is dead. One reason the sheriff may have avoided this is the controversy around several recent police shootings in the U.S. Otherwise, it's not clear why he wouldn't include this information. 

+ Then, he could have discussed the number of casualties, which he did clearly. 

- Part of the statement could have been given by the university president. That is more typical in these situations, as we saw in the Virginia Tech shooting. (See President Steger's statement.)

+ He appropriately gave contact information and a place where people are gathering.

+/- The public information officer is understandably nervous in front of the camera. He could have been more confident when telling the reporter that they weren't taking questions, and he could have simply walked away from the camera when he was finished. It's not clear why the sheriff passed this part off to him-possibly he wanted the officer to have some media exposure; although a terrible tragedy, this is a very big deal for the town.

Much publicity is surrounding President Obama's statement. 

T-Mobile and Experian CEOs Address Data Breach

A data breach at credit card processor Experian has exposed information about millions of T-Mobile customers, and the CEO is "incredibly angry" about it. Although credit card and banking account numbers weren't stolen, names, addresses, emails, and social security numbers were.

In a "Letter to Consumers" on the company's website, John Legere wrote, "I've always said that part of being the Un-carrier means telling it like it is. Whether it's good news or bad, I'm going to be direct, transparent and honest."  

Experian also published a statement on its website. In a bulleted list, the company explained what happened and then offered several FAQ's under simple headings: "About the Incident," "What Does This Mean for Me?" "I'm Still Confused," and "What We're Doing to Make It Right." 

Although Legere offered two years of free credit monitoring, customers are no longer trusting the company's service. The CEO responded on Twitter: "I hear you. I am moving as fast as possible to get an alternate option in place by tomorrow."

Discussion Starters: 

• Legere uses a conversational style in his Letter to Consumers. Do you consider this appropriate for the situation, unprofessional for a CEO, or something else?
• Analyze the organization of Experian's web statement. What works well, and what could be improved? 
• What principles of bad-news messages from Chapter 8 do these examples follow? 

United Airlines Announces Executive Departures

Three United Airlines executives left the company because of an investigation into whether unprofitable flights were added to suit NY/NJ Port Authority Chairman David Samson. The question is whether United executives exchanged flights to Samson's home for funding from the Port Authority.

The company gave this statement about the departures of CEO Jeff Smisek, the vice president of communications and government affairs, and the senior vice president of corporate and government affairs:

"The departures announced today are in connection with the company's previously disclosed internal investigation related to the federal investigation associated with the Port Authority of New York and New Jersey. The investigations are ongoing and the company continues to cooperate with the government."

The statement was also part of a longer press release, which focused on newly appointed CEO Oscar Munoz. In a message to employees, Munoz expressed his hopes for the company's future.

Discussion Starters:

• Assess United's press release and the CEO's message to employees. What are the communication objectives, and how well do these communications meet those objectives?
• How do you think employees are reacting to the news? What else should the management team communicate internally? How should they reach employees throughout the company?

Zirtual Ends Service, and Communication Is Criticized

After starting business just 18 months ago, Zirtual has abruptly announced its demise. Customers and the 400 employees of the virtual personal assistant company were surprised and angry. 

 

Business Insider points out the irony in the shoddy communication. Just three weeks ago, Zirtual CEO Maren Kate Donovan discussed in a Fortune magazine article how important it is to keep employees "in the loop": 

"My team is without a doubt my biggest asset, which is something I never take for granted. So it's vital to keep them in the loop during periods of change and consistently show support. Because what my employees don't know could ultimately hurt the entire business. The sooner your team knows about upcoming shifts in the company-the better.

"Additionally, give your employees ample time to adjust, as change in a company can often lead to people feeling unstable in their positions. And be transparent."

Zirtual has backpedaled, indicating that it's taking a "pause": 

"The decision to pause operations was the most difficult message I've ever had to deliver. I have spent every waking hour over the past four years working to build the most vibrant community of empowered workers only to have to let them know at once that we could no longer service them."

The upside is that Startups.co will be taking over operations, so some service and some employees will be reinstated. 

Discussion Starters: 

• How, if at all, could this situation have been avoided? It's understandable that Zirtual scaled up too quickly and had to cease operations, but how could the communication have been better? 
• Now that Zirtual will be bought out, what should Startups.co and the former CEO communicate?

Kraft's Direct Recall Notice

In a straightforward press release, Kraft announced a recall of its Singles products. The headline is clear and specific, and the main point is up front. The notice begins as follows: 

THE KRAFT HEINZ COMPANY VOLUNTARILY RECALLS SELECT VARIETIES OF KRAFT SINGLES PRODUCTS DUE TO POTENTIAL CHOKING HAZARD

Only 3-Lb. and 4-Lb. Packages of Kraft Singles Included in Recall

NORTHFIELD, Ill.--(BUSINESS WIRE)--Jul. 31, 2015-- The Kraft Heinz Company is voluntarily recalling select code dates and manufacturing codes of Kraft Singles individually-wrapped slices due to the possibility that a thin strip of the individual packaging film may remain adhered to the slice after the wrapper has been removed. If the film sticks to the slice and is not removed, it could potentially cause a choking hazard.

This Smart News Release features multimedia. View the full release here:http://www.businesswire.com/news/home/20150731005896/en/

Kraft calls this a "Smart News Release" because it has more than text. A table and images show how to find affected products.

One line in the release expresses the company's sentiment: "We deeply regret this situation and apologize to any consumers we have disappointed."

Discussion Starters: 

• Complete an audience analysis for this situation. What is important for Kraft to know as it navigates this recall?
• Analyze the entire release for clarity, tone, organization, and so on. Which principles for bad-news messages from Chapter 8 are followed, and which are not?
• What else, if anything, should the company communicate at this point? Is the apology sufficient?

Toshiba Resignations

Toshiba has announced the resignation of the chief executive and seven other board members in the wake of an accounting scandal. An independent report found that the company had overstated earnings by $1.2 billion over seven years. 

In a news conference, Chief Executive Hisao Tanaka said, "I apologize from my heart to all our stakeholders. To clarify management responsibility, I resign my posts as president and member of the board of directors as of today."

In the Japanese culture, it is traditional to bow deeply, particularly when admitting wrongdoing. Tanaka also said, "The responsibility lies in the management, including myself. As a response, I am stepping down from the post as the CEO and president."

The committee that issued the report found "systematic involvement, including by top management, with the goal of intentionally inflating the appearance of net profits." The committee also wrote, "Within Toshiba, there was a corporate culture in which one could not go against the wishes of superiors." 

In a company statement, Toshiba promises changes as a result of the committee's findings, including disclosing the investigation report and correcting past financial statements. 

Image source.

Discussion Starters: 

• What differences do you see in Toshiba and Toyota's news conferences (in 2010) compared to American companies' public hearings, such as GM's? 
• How much confidence do you have in Toshiba after hearing this news? What can the company do to rebuild the brand?

Microsoft's Latest Layoff Email

Microsoft CEO Satya Nadella sent an email to employees announcing a major layoff-7,800 employees. This is in addition to the 18,000 employees laid off last year. 

Satya's email breaks the news starting in the third paragraph: 

"We anticipate that these changes, in addition to other headcount alignment changes, will result in the reduction of up to 7,800 positions globally, primarily in our phone business. We expect that the reductions will take place over the next several months.

"I don't take changes in plans like these lightly, given that they affect the lives of people who have made an impact at Microsoft. We are deeply committed to helping our team members through these transitions."

Nadella goes on to describe changes in the company's phone, mapping, and advertising businesses. His email is considerably better than Stephen Elop's long, rambling message in 2014, which revealed the bad news in the 11th paragraph. 

Still, U.S. Republican Senator Jeff Sessions criticized Microsoft's layoffs:

"Microsoft has just announced it is laying off another 7,800 workers, on top of the 18,000 layoffs it has already announced. This means Microsoft has shed roughly 1/5th of its workforce in the past couple years. And yet Microsoft, perhaps more than any other major U.S. company, has claimed it suffers from a shortage of American workers and must therefore import more H-1B foreign guest workers."

Image source.

Discussion Starters: 

• Assess Nadella's email. What works well, and what could be improved? Consider the audience and purpose when you analyze the tone, word choice, organization, and so on. 
• What's your view of Senator Sessions' criticism. Is this fair given the current layoffs?

Blue Bell CEO Explains Layoff Decision

In an emotional message, Blue Bell Creameries CEO and President Paul Kruse explains the "agonizing decision" to furlough some employees and lay off others. The company is struggling to regain ground after a recall stopped production. 

So far, the video post on Blue Bell's Facebook page received 1,022 likes. 

In a press release, the company described which and how many employees are affected: 

• Employees who are essential to ongoing operations and cleaning and repair efforts will continue to work but have their pay reduced. 
• A second group of employees will be placed on partially paid furlough.  They will be paid a substantial portion of their current pay, with the expectation that they will return to work as production resumes. 
• Because there is not a clear timeline for when production will resume, and because supply and distribution will be limited when it does, a third group of employees will be laid off. 

In total, "Approximately 1,400 employees will be furloughed, and approximately 750 full-time and 700 part-time employees-or 37 percent of the total Blue Bell workforce of 3,900-will be laid off."

Discussion Starters: 

• Assess Kruse's video message: which principles of bad-news messages does he follow? How well does he deliver the news? 
• Next, assess the press release: organization, word choice, tone, and so on. What works well, and what would you suggest the company improve? 
• If you were an employee affected by this decision, how do you think you might react? 

Amtrak Posts Messages About Crash

An Amtrak train traveling from Washington, D.C., to New York derailed, leaving at least six people dead and more than 200 injured. The investigation has started with the obvious question about speed.  

Passengers describe a horrible scene with items and bodies flying around the cars. Some people are still missing. 

In the meantime, Amtrak posted two messages to its Facebook page. The first simply announced the accident and provided an emergency number for people to call. The second gave more information and conveyed the company's regrets: 

Wednesday, May 13 2:45am

We are deeply saddened by the loss of life from Amtrak Northeast Regional Train 188 that derailed north of Philadelphia Tuesday evening. We ask the news media to be respectful of our customers, our employees, and their families.

There were approximately 238 passengers and 5 crew members on board. Individuals with questions about their friends and family on this train should call the Amtrak Incident Hotline 800-523-9101. Amtrak has also established a Family Assistance Center to work closely with family and friends of individuals on the train. Local emergency responders are on the scene and an investigation is ongoing.

On Wednesday, May 13, modified Amtrak service will be provided between Washington and Philadelphia, Harrisburg and Philadelphia, and New York and Boston. There will be no Amtrak service between New York and Philadelphia, but New Jersey Transit will honor Amtrak tickets between New York City and Trenton.

Other Amtrak Service between New York and Albany-Rensselaer; New Haven and Springfield, Mass., and other points will operate.

Additional updates will be provided when available.

Image source. 

Discussion Starters: 

• Assess Amtrak's Facebook post. What works well, and what changes would you suggest?
• What else, if anything, should the company do or say at this point?  

SurveyMonkey Announces Death of CEO

Dave Goldberg was the CEO of SurveyMonkey and husband of Sheryl Sanberg, COO of Facebook and author of the book "Lean In." At just 47, Golberg died of head trauma after falling off a treadmill at a gym in a private villa in Mexico, where he was vacationing with family and friends. 

According to The New York Times, Goldberg was "well regarded as an entrepreneur and mentor and was the less famous half of one of Silicon Valley's most prominent power couples." The news came as a shock and caused speculation about the cause. But a spokesperson for the prosecutor's office in the Mexican town said plainly, "he fell off the treadmill and cracked his head open." The incident may lead to new measures treadmill safety.

SurveyMonkey posted this announcement on its website: 

 

Image source. 

Discussion Starters:

• How do you assess Survey Monkey's statement? Which principles of delivering bad news in Chapter 8 are followed, and which are not? Consider the audience, purpose, and so on. 
• Should the company say or do anything else at this point? 

Companies Respond to Data Breaches

British Airways, GitHub, and Uber have responded to potential security attacks in different ways. 

British Airways' Executive Club members complained of unknown hotel bookings and phone number changes, but the company said only a few frequent flier members were affected. Critics say that BA shouldn't ask users to click a link to change their password, which is confusing because this is a common phishing scheme. The company sent an email to Club members. 

GitHub blamed China for a DDoS (distributed denial of service) attack, but a representative from the Chinese government denied the claim: 

"It is quite odd that every time a website in the US or any other country is under attack, there will be speculation that Chinese hackers are behind it. I'd like to remind you that China is one of the major victims of cyber-attacks."

Although users complained that their Uber accounts were hijacked, the company denied a breach: 

"We take any issue of this nature very seriously and after investigating have found no evidence of a breach at Uber.

"Attempting to fraudulently access and use Uber accounts is illegal and we notify the authorities about such activity.

"We would like to remind people to use strong and unique usernames and passwords and to avoid reusing the same credentials across multiple sites and services."

Discussion Starters: 

• Compare messages from British Airways (above), GitHub, and Uber. How do you account for the differences? Consider the industries, company culture, circumstances, and so on. 
• If companies such as British Airways shouldn't use an email link for people to change their passwords, what is a better approach?