Washington Mutual recently announced plans to realign business efforts to help reduce costs and to help regain their profitability. Part of this effort requires elimination of various products and services that were identified as not being successful and also being very costly. This new realignment also means Washington Mutual will be reducing their force to help achieve this new reorganization and to better align them with their strategic plan. In addition, Washington Mutual confirmed that the planned cuts would help to eliminate about $500 million in expenses which would help in regaining their position in the market.
InterClean, much like Washington Mutual also decided that by realigning their strategic efforts and encompassing a new vision, they needed to make some drastic changes. InterClean, decided they would enhance their products and services by offering full range service packages that would be customized to the customer’s needs. This involves reviewing current staffing skills to determine if the right people are in the right place. This new transition may bring in new staff or may mean reorganization of current staff. There is an overall fear and reduction in employee morale immediately as the new efforts are announced. Employees are feeling the pressure and are certain that along with this realignment there will be changes in or reduction in staff.
Response to Issue:
Washington Mutual decided not to make a public statement in regards to the upcoming lay-offs that would take place over the course of the year. In stead, they issued an internal e-mail to employees encouraging them to pitch in and help turn the company around. The e-mail was meant to be motivating to employees so that they could regain their position in the banking industry by driving success in other areas. However, the e-mail generated fear among employees and also a reduction in employee morale. Washington Mutual was quoted as saying, “"In short, we will do what we must to...