Company Mergers and How They Affect Employees

If you have consumed the news in any form lately then you probably are aware of the fact that Amazon bought out Whole Foods. This major merging of two massive companies has been making many headlines in recent news cycles.

Just this past Monday, Amazon closed the $13.7 billion dollar acquisition of the natural foods superstore. Immediate after-affects included the slashing of prices—but what are some other ways in which company mergers affect things? Most importantly to readers like you, how do company mergers affect employees?

Though they seem like huge moves, mergers and acquisitions are actually quite common. They are common in today’s business marketplace for a variety of reasons, the largest being they allow for companies to acquire products and technologies they may have not previously had access to. In this case of Amazon and Whole Foods, Amazon was able to burst into the grocery industry in a huge way.

When companies merge, it often leads to layoffs. This results from too many people to fill a streamlined roster of roles. For example, the director of marketing from company A and the director of marketing from company B likely cannot both retain their jobs when their companies merge to create company AB. It is instances of duplication like this that lead to many layoffs.

Beyond layoffs, employees can be impacted in other ways when companies merge. For example, if a larger company with an entirely distinct culture acquires a smaller company with an entirely different culture from the first, it may be hard for the employees to adjust to the new culture.

When a company absorbs another or merges with another, the employees who deal with the day-to-day functions often feel the most impact.

Leadership changes, rule changes, office changes and the like all impact the experience of an employee. If reporting structures change, it can change everything. Such a top down alteration has a reverberating affect felt by all throughout the office.

Nevertheless, it is entirely possible the day-to-day of employees employed by a company who has undergone a merge or acquisition related change would not feel much of a difference at all.

This could depend on hierarchy, smoothness of the transition or a variety of other circumstantial matters. If a company who has recently undergone an aforementioned type of change employs you, you should make sure to brace for the coming changes, and do your best to adapt. Ultimately, if the working environment is no longer professionally satisfying, perhaps you should search for place where you can feel like it is a good fit.