When a merger of two companies happens and the time for the inevitable layoffs arrives, it is important to evaluate employees in the context of their new roles with the merged company.
Two mistakes are common in this scenario. The first mistake is made by the company. Due to the lack of transparency typical of corporations (for a variety of reasons, mostly invalid), managers are not informed or consulted on the new roles for their teams after the merger. Therefore, the manager does not have the appropriate context for evaluating how well current employees will fit in the new environment.
The second mistake is made by the managers. They must predict what the new context for each employee will be and how well suited the employee is for that context. If no information on the new organization is provided, ask for it. Even when you are able to obtain information, you must also weigh it against what you know about the acquiring company and their management. What have they done in previous mergers? Do they have an "East Coast" or a "West Coast" mentality? By looking at the financials, are they just putting pieces together in the hope of selling the whole, or do they plan to operate the business long term?
As an example, let's say you develop software for Linux, and you are being acquired by a Windows shop. You would probably rank employees differently depending on whether the target OS is Linux or Windows. If the acquirer is going to maintain the Linux products while migrating to Windows, you should think about who is best at maintaining the Linux products (which is not necessarily the same is who is best at developing Linux products).
Free bonus advice: don't be naive, and when in doubt, be pessimistic.
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