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| | Agilent Technologies |  | President/CEO:Mr. Edward W. Barnholt | | 17897 employees | | HQ: Santa Clara, CA | | www.agilent.com |
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| During the 2001-2002 tech slowdown, Agilent Technologies' showed how to weather a recession while maintaining high levels of credibility and trust. |
| After earnings per share plummeted, management candidly explained the company's situation to employees. In 2001, management instituted a 10 percent temporary salary reduction for senior managers, which was extended to all employees a month later. Beginning November 2001, it suspended the reduction for three months to coincide with the holiday season, reinstituting a five percent reduction in February. Senior managers continued to reduce salaries by 10 percent. |
| These gestures showed management's commitment to avoiding layoffs, and saved an estimated 15,000 jobs. By August 2001, however, it became clear that layoffs were necessary. CEO Ned Barnholt broke the news to employees in a worldwide employee announcement that was candid and direct. He did this before speaking with investors or the business press. |
| After the announcement, the news was posted on the company's online newsletter; business managers hosted "Coffee Talks," to give employees an opportunity to hear full and clear explanations of the layoffs and get questions answered face-to-face; and "frequently asked questions" were posted online and candidly answered by management. |
| Employees knew the reasons for the layoffs and felt grateful for the candid communication. |
