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Before You Lay People Off, Read This

The U.S. has seen one of the biggest surges in layoffs in the last decade.

 

While reducing headcount is sometimes necessary, I’m seeing too many organizations go there too quickly, before fully exploring other options.


I’m also seeing something else.

  • Layoffs handled by email.

  • Quick virtual meetings.

  • Little thought to the ripple effect.


A friend of mine had their entire department eliminated in a Zoom meeting. It was explained that the work was being outsourced.


After the message was delivered, their manager joined the call—and had no idea what had just happened.


Six months later, they were posting for many of the same roles.


That wasn't always the case. Organizations used to put much more thought and care into both the decision and its handling.

 

The Real Cost of Layoffs


Layoffs don’t just impact the people who leave. They impact everyone.

Trust takes a hit.

Productivity drops.

The people who stay are stretched thin.

And critical knowledge walks out the door.


Then, a year later, many organizations are hiring for the same roles again.

But here’s the part that doesn’t reset that quickly: the culture.


How you handle layoffs sticks with your employees and in the market. If it’s handled poorly, you’ll feel it later when it’s harder to attract and retain the talent you need.


Before You Decide to Lay People Off


Slow down and ask a few better questions:

  • Is this a short-term cash flow issue or a deeper business problem?

  • Have we truly exhausted other options (hiring freeze, not backfilling roles, reducing hours, or reducing expenses elsewhere)?

  • If we eliminate these roles, who is doing the work—and is that sustainable?

  • How will this impact trust and morale?

Layoffs may still be the right answer.


If You Have to Do It, Handle It Well


I’ve been in HR for over 30 years and have been involved in countless layoffs (and the recipient of a few myself).


Here’s what I’ve learned:

How you do it matters just as much as the decision itself.

You can’t control how someone will respond. But you can control how you handle the process.


Do it with preparation, clarity, and respect.

 

1. Communicate Clearly

Say what actually happened.

  • What drove the layoffs (not vague “restructuring”)

  • Who is affected and why

  • Whether this is complete or if more could happen

  • What the path forward looks like

If you don’t say it, people will fill in the blanks—and it’s rarely in your favor.


2. Support the People Who Are Leaving

This is a defining moment for your organization.

Be clear, human, and prepared.

  • Treat people with dignity and respect

  • Be direct, but not cold

  • Make it clear it’s not personal

  • Provide severance aligned with tenure

  • Offer outplacement support or references when possible

  • Clearly explain benefits, final pay, unemployment, and next steps

  • Give them a contact for follow-up questions (they won’t absorb everything in the moment)

People will remember how you handled this, and for a long time.


3. Don’t Forget the People Who Stay

This is where many organizations miss it.

The “survivors” are dealing with:

  • Uncertainty

  • Guilt

  • Frustration

  • And usually, more work


Support them intentionally.

  • Communicate openly and often

  • Acknowledge the emotional impact

  • Address workload changes immediately

    • What’s stopping

    • What’s continuing

    • What’s being deprioritized

  • Clarify roles and decision-making

  • Increase manager visibility and check-ins

  • Create space for feedback and concerns

  • Reinforce what’s stable

  • Recognize the extra effort early

If you don’t support the people who stay, you risk losing them next.


After a Layoff, Your Job Is Simple (Not Easy)


Focus on three things:

  • Clarity — What now?

  • Capacity — What’s realistic?

  • Connection — How are people really doing?

Miss one of those, and you’ll feel it.


If You Need Help


If you need help with decision-making, creating termination protocols, or outplacement (transition) support, contact me at leslie@influencehrconsulting.com.


If you have been impacted by a layoff and would like a Career and Outplacement Guide, reach out, and I'm happy to send it your way.


 
 
 

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HR Consulting | Fractional HR | Winston-Salem, NC | Serving the Triad in NC and beyond

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