In 2021, Better.com stirred controversy when it laid off 900 employees via a Zoom webinar. In 2023, when Google cut its workforce by 12,000, some employees say they learned of their termination by email or abrupt loss of system access. This detached style of layoffs demonstrates a chilling lack of personal connection, reflected in the often-heard phrase, “It’s just business.” But “you don’t have a business without the people,” points out Sacha Thompson, CEO of The Equity Equation.
Following a layoff, remaining employees often grieve as they adjust to their new normal, including the inevitable shifts in team dynamics created by the absence of their colleagues, Thompson says. Rather than pretend nothing happened, organizations need to acknowledge this grief period and be transparent, allowing the team to process the loss and move forward cohesively, she says.
Thompson warns that treating people as disposable, their contributions and presence easily replaced, can cause the remaining employees to disengage and withhold their best efforts.
Brent Herman, director of talent solutions at Hanover, echoes this sentiment, stating that employers have “a duty of care to employees.” How this duty plays out across cultures and legal frameworks may vary, but the underlying principle of treating employees with dignity remains universally applicable.
Effectively handling layoffs and building a future for the remaining employees demands care, communication and commitment. Organizations succeed best at this by following several strategies.
Layoffs should be a last resort
Some research suggests that organizations downsize to cut costs and increase efficiency, but the long-term impacts may contribute to worker turnover, disengagement and dissatisfaction.
Marc Vollebregt, founder of AVEC, a company to help people work better together, says layoffs should be the “absolute last resort.” Before choosing to lay off an employee, Vollebregt recommends asking the following questions:
- Are there single-earners with a family who really can’t lose their job?
- Are there employees who have a partner with a well-earning job so they can work fewer days and rely more on them for the coming months?
- Can we park or reduce the bonuses for a certain period?
- Can some employees work less?
These are difficult conversations but are “far more powerful than one-sided decisions,” says Vollebregt. “If you trust your people with the truth, they’ll often surprise you with their willingness to help find alternatives.”
Sometimes, however, layoffs are inevitable. How do you handle them in a way that reflects well on your organization?
Communicate ahead of time and offer outplacement services
Though it seems counterintuitive to give advance warning of pending layoffs, Herman says it’s better to be open and create awareness to not catch employees off guard and break trust. “Communities are small, and word gets around,” he says. “Your brand is only as strong as your employees’ marketing of your business to the external environment.”
When laying off employees, it’s best to conduct a meeting with HR present, recognizing the value the employee brought to the team, thanking them for their dedication and hard work and assuring them the decision doesn’t reflect on their value as a professional, Herman states. He adds that this should be followed up with written communication because most employees will be too overwhelmed to take it all in during the meeting.
It’s best practice to offer outplacement services to exiting employees, which include the following:
- Resume/CV writing and review
- LinkedIn profile optimization
- Career coaching
- Job search assistance (access to job boards or networking events)
- Interview skills training
- A letter of recommendation (or share one on LinkedIn)
- Counseling services
Treating employees with care during a layoff means they are more prone to return to a company if rehiring occurs (saving the organization money on training costs) or recommend their qualified connections to apply, Thompson says.
Equip managers with talking points and provide EAP services
To effectively navigate this transition period, employers should be open about why the layoffs are necessary, reaffirm the company’s mission and be transparent about the future, Herman says. He recommends companywide town halls, manager-led team meetings and ongoing email updates. This approach allows companies to address the issue head-on, field questions and thoughtfully respond.
Herman provides this script:
“Today has been a difficult day, and we recognize the impact this has on everyone. Saying goodbye to valued colleagues is never easy. These changes were necessary for the long-term health of the company, but we know they bring uncertainty. We are committed to keeping you informed and supporting you through this transition. Your work remains critical to our mission, and we appreciate your dedication during this challenging time. We will continue to listen, support and navigate these changes together.”
Managers are not often equipped to handle conversations surrounding layoffs. They can feel nervous or skittish to answer questions if they don’t know how much information they are allowed to share or if they are unaware of the reason for changes. Thompson suggests it’s best to provide managers with talking points to help them succeed. When she was a manager, she found it helpful to ask her employees, “How can I best support you?”
Sometimes, that means connecting employees to external sources, such as employee assistance program (EAP) services, which can provide counseling and other resources to help them cope with the changes. It can also mean checking in with employees for several months following the layoffs too. It’s about creating a community of care, Thompson says.
The long-term benefits of humanizing the process
Newsweek produces a “Most Loved Places to Work” list every year. In 2024, KCSA Strategic Communications placed 34th on that list. KCSA’s chief human resource officer, Katie Roland, says the way “a company says goodbye to employees directly affects the culture of those who stay. When you take care and support those who have to leave, you signal to the ones who remain that they are important and your company is worth toughing it out.”
Contrary to what employees may think, no one wants to conduct layoffs, she says, because “leaders and HR professionals would much prefer to see their companies grow and thrive. When… necessary to protect the company and remaining jobs, HR has a responsibility to do so with care and humanity.”
Roland says even a simple call or text to former employees can help them feel valued and reduce possible feelings of inadequacy.
Companies can provide a more compassionate offboarding experience through services such as When, an AI-powered health insurance marketplace that supports exiting employees by finding affordable alternatives to COBRA insurance and provides other services, including resume building, career coaching and financial advice. Co-founder and CEO Andy Hamilton says 93% of exiting employees report satisfaction with When’s support during their transition, and company representatives say it allows them to “actualize their promise to support their employees at every stage of the employee life cycle.”
Hamilton says that in 2024, one of his clients, a leading business and technology firm, “faced a reduction-in-force due to external market conditions. As a people-first organization, the client recognized that conventional solutions fell short of their commitment to fostering a resilient and empowered workforce.” Partnering with When helped 61% of their exiting employees lower their health care expenses by an average of $2,300, says Hamilton. The client benefitted, too, estimating the alternative solutions saved them $1.4 million.
Though harder to quantify, Hamilton believes his company helps clients reduce negative publicity, improve employee morale and protect their reputation.
“As someone who has personally been impacted by a layoff while responsible for raising a family in a high cost-of-living city,” Hamilton says, “I can say with confidence that any support employers provide to their exiting employees can go a long way.”
Photo by Media_Photos/Shutterstock
