Client: I need to announce upcoming layoffs due to financial strain, and I’m worried about damaging morale. How do I communicate this in a way that’s compassionate but still honest?
Consultant: This is one of the most difficult conversations a leader can have. The key is to be clear, transparent, and humane—while avoiding unnecessary details that can spark rumors or panic. Employees should hear the news directly from you, not through the grapevine, and they should understand both the ‘what’ and the ‘why.’
Client: Should I tell everyone at once, or start with individual conversations?
Consultant: Timing and sequencing matter. If the layoffs affect multiple people, it’s best to tell impacted employees privately first, then address the whole group. This ensures individuals don’t hear about their own layoff in a group setting, which can feel impersonal and disrespectful.
You could say to impacted employees:
“I want to speak with you privately because I have some difficult news. Due to ongoing financial strain, we have to reduce our workforce, and your position is being impacted. This decision is not a reflection of your performance. I want to walk you through what this means and the support we’ll provide during this transition.”
Client: How much detail should I share about the financial situation?
Consultant: Share enough to provide context without overloading employees with numbers or confidential details. The goal is to help them understand this is a business decision, not a personal judgment.
You might say to the group:
“Our organization has been facing significant financial challenges due to [brief reason—declining revenue, loss of a major contract, etc.]. After exhausting other options, we have to make the difficult decision to reduce staff so we can remain viable and continue serving our mission.”
Client: What if employees who are staying feel guilty or fearful?
Consultant: That’s a real risk. Address it head-on. Recognize the emotional impact and outline the plan moving forward.
Try this:
“I know this is hard, and it’s natural to feel a mix of emotions right now. We’ll be supporting those who are leaving, and we’re also committed to supporting those who remain. I want to focus on stability and clarity for the team moving forward.”
Client: How do I make sure people know we care?
Consultant: Show it through action, not just words. For departing employees, offer outplacement resources, job search assistance, or extended benefits where possible. For remaining employees, be present, listen, and communicate regularly.
You can add:
“We value the contributions of every team member. For those leaving, we’ll do our best to provide resources to help with the transition. For those staying, I’m committed to keeping you informed and involved as we navigate the future together.”
Client: What if people get angry or start asking tough questions I can’t answer?
Consultant: Stay calm, acknowledge the emotions, and be honest when you don’t have all the details.
You might say:
“I understand this is upsetting, and I may not have every answer today. I will share updates as soon as I can, and I’m committed to being as transparent as possible.”
Client: So, the key is clarity, compassion, and consistency?
Consultant: Exactly. Communicate early, directly, and with empathy. Make sure people know the decision is about the financial reality, not individual worth. And follow up—how you lead after the announcement will matter just as much as the announcement itself.
And, if you’d like help preparing your talking points or a support plan for both departing and remaining employees, we’re here to help.