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Is it a common thing that a company joint venture with other company in certain division will result some of employees under that division to resign?

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  • It would depend on the circumstances.
    – Kilisi
    Jun 24, 2016 at 14:51
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    In case of mergers and takeovers, it is common for certain employees to "get volunteered" to resign (which, by the way, just means that they got fired). I have never heard of anyone resigning over a joint venture.
    – Masked Man
    Jun 24, 2016 at 15:00
  • By saying joint venture, are you referring to a hidden take-over of one company by another ? In that case, massive quitting and equally massive lay-offs are expected. But two companies merging work forces together to tackle a bigger project, it is highly unlikely that people will quit unless they of small mind-sets, refusing to work for something larger (and yes such people exist)
    – MelBurslan
    Jun 24, 2016 at 15:08
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    If they are doing it to share cost as in more efficient then most likely people would be let go. Don't resign. People laid off typically get a severance package. Also looking for another job I was laid off presents better than I resigned.
    – paparazzo
    Jun 24, 2016 at 15:30
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    Is it truly being laid of is better than self-initiative resignation? I thought it will be a bad image for that employee to be seen as a very low performance employee.
    – Lewis
    Jun 24, 2016 at 15:34

4 Answers 4

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Most joint ventures I have seen actually employ more staff at both ends because it's extra work. I have seen people quit, but not many. Usually the few that would quit are people that are unsuitable anyway.

It would depend on the exact circumstances, but that's what I have seen. There are very few circumstances I can think of (never seen it) where people would quit in droves, possibly if there was a major hit to morale for some reason. Or if the work was just so different that they feel they can't learn it and the joint venture was at the expense of other jobs they were doing, rather than extra to them.

If a company is relying on a joint venture at the expense of what it already has, then it might be a good idea to get out.

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Depends. Normally people would stay on board if the company switched. In typical take overs they will keep everything as is. Some restructuring may be done.

It depends on who you're seeing leave. For example, if a mass of workers are leaving it could be a sign of lay off or restructuring by lower/upper management. If you're seeing a mass of upper/lower managers leaving, it could be a sign of a pending lay off of workers (basically they're jumping ship knowing something but just not telling the workers).

It's rare someone would leave just because they disagree with the company's business direction. Unless of course there are some ethics involved but that is rare. If you're concerned for your job security do pay attention to what the managers are doing. That could tell you if you need to find a new job or not. As always it is wise to keep your resume up to date regardless.

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  • It's a joint venture rather than a takeover
    – Kilisi
    Jun 24, 2016 at 14:52
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Everyone has their own risk appetite. Some people require a high level of stability in their work environment. Others are fine with turmoil. People have their own reasons for leaving and you just need to figure out why they are leaving. If people are leaving just because they don't like new things then its probably fine. If people are leaving because they are unhappy with it, then you are probably fine too. However, if people you know to be hard workers are leaving because they don't think it will work, then you need to evaluate your situation.

With that being said, there is one thing I believe to be universally true: if you see the finance department updating their resumes, you need to be too.

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  • Your last paragraph is exactly happens in my company.
    – Lewis
    Jun 24, 2016 at 15:12
  • To me that tells you all that you need to know. Jun 24, 2016 at 15:17
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This is a highly variable question. I am currently in the heat of a merger and we are seeing a lot of change. This is resulting in people that don't like the direction, or lack there of, to find other work. We have seen a lot of turn over because of this unfortunately.

On the other hand I have seen cases where there was little turnover. It all really depends on how things go, what changes, how much it changes, and if those changes were important to people.

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