A new CEO doesn't always mean layoffs. What to watch out for
The CNN Business article, "A new CEO doesn't always mean layoffs. What to watch out for," quoted Russell Reynolds Associates Consultant Anthony Abbatiello on the reason for layoffs during leadership transitions. The article is excerpted below.
As soon as a new CEO is named at a company, the rumor mill often goes into high gear and staffers start to worry.
The basic concern is: Will I lose my job?
The prospect of layoffs is usually tied less to a new chief executive per se than to the state of the company and its future needs, said Anthony Abbatiello, head of Russell Reynolds Associates' Leadership & Succession Practice.
Nevertheless, many people assume the worst because they've seen employees being shown the door soon after a new CEO is appointed.
Be prepared for at least some changes in the c-suite
New CEOs' assessments will usually start at the top.
They need an executive team that works well with them and is able to execute the new strategies they have in mind.
So they will look at the composition, tenure and effectiveness of the inherited c-suite team, consider each executive's expertise in the context of what's needed going forward and look at how each member's strengths complement those of the chief executive himself.
"You'll usually have some degree of replacement at the senior level," Abbatiello said.
To read the full article, click here.