Navigating Layoffs: Protecting Company Culture and Employee Experience in Hard Times

Layoffs are an unfortunate, but often necessary, decision company leaders must make for a business’s long-term success. While there is not a perfect way (or time) to conduct layoffs, handling the situation thoughtfully and strategically can make a big impact on internal culture and how employees feel about the company’s future.

Here are five ways company leaders can manage layoffs while prioritizing employee experience.

1) Communicate the “Why” and Frame It for the Future

A critical first step in the layoff process is explaining why it’s happening and how it aligns with the company’s long-term vision. Explain the company’s current state, emphasizing the roadmap for future stability and growth. By framing the future clearly, you lay the foundation for restoring trust and confidence in the company’s direction.

2) Prioritize Direct, Compassionate Communication with Affected Employees

The timing and channels of layoff communication are just as important as the words used, as both demonstrate care and empathy. Collaborate with leaders to establish a well-paced schedule for notifications and review it thoroughly. Investing time in creating a respectful, orderly communication plan will help make this difficult time as compassionate as possible.

3) Prepare Managers with Change Management Skills

Managing a layoff effectively involves preparing managers to navigate the change alongside their teams. Ideally, change management should be a part of management development, so leaders are already familiar with guiding teams through uncertainty and change. Remember, managers need time to process and absorb the information themselves, so the more preparation you provide before they need it, the better they’ll  navigate the change when it happens.

4) Use Careful Language that Focuses on Employees

Words matter deeply in times of crisis. When speaking to employees, be mindful of language that centers on them, not the company or executives. This isn’t the time for statements like, “We’re sad about this decision.” Avoid framing the company or executives as the victim. Instead, focus on the employees who are affected and acknowledge their contributions. This approach shows respect for those leaving and reassures those staying the company is taking a people-first approach in addressing the organization’s challenges.

5) Establish a Post-Announcement Communication Plan

Announcing layoffs is only the beginning of rebuilding trust and morale. It’s vital to develop a communication plan for the period following the layoffs, detailing how the company will provide updates and maintain transparency about the future. Keeping remaining employees informed as the company moves forward strengthens their confidence in the organization’s future.

Handling layoffs with employee experience at the forefront requires thoughtful planning, honest communication and an unwavering focus on people. While it will never be welcomed news, it can be delivered and managed in a way that builds stronger employee experience over the long term.