How to Handle Layoffs: A Leader’s Guide to Doing It Right

The decision is made—your organization has announced a reduction in force, and people in the teams you care about are going to lose their jobs.

You want to handle this well, but what does “well” even look like in a moment like this?

At some point in your career as a people leader you may have to deliver this news to an employee or coach a manager to let go people on their team - this is a tough spot to be in. While the news itself is non-negotiable, the way it’s delivered is. 

Here is how to do just that.

Layoffs Hurt.

Mishandled Layoffs Hurt Even More.

It’s one thing to make a tough business decision. It’s another to have your culture, your credibility, and your people’s sense of safety fractured in the process. 

Mishandled layoffs don’t just affect the people who leave, they ripple through your team. They create uncertainty, erode trust, and damage the team culture you’ve worked hard to build.

So, what does it look like to handle layoffs “well”? 

Do it with empathy.

Empathy Isn't Soft. It's Strategic.

In the face of layoffs, empathetic leadership doesn’t mean sugarcoating the message—it means delivering it with care, transparency, and compassion. Empathy in simplest terms is to put yourself in the place of another, to walk in the shoes of another. If you were on the negative side of the conversation, think about how you would want to be treated?

7 Ways to Lead Through Layoffs with Empathy

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1. Communicate Quickly and Transparently

Delaying hard news creates confusion and distrust. Be clear and timely. According to SHRM, transparent communication—including the “why” behind layoffs—helps reduce feelings of betrayal and builds understanding. 

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2. Prepare Managers to Deliver the Message Well

Your managers are on the front lines. Don’t assume they know how to deliver this kind of news. Train them on what to say, how to say it, and how to respond to tough emotions. 

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3. Hold a Team Meeting First

Before diving into individual hard conversations, meet with your team collectively. This ensures everyone hears the same message at the same time and prevents misinformation. Acknowledge the impact, honor those affected, and outline next steps.

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4. Acknowledge Emotions—Including Your Own

Layoffs aren’t just logistical—they’re emotional. Forbes notes that leaders who name emotions (grief, anxiety, guilt) create psychological safety and reduce shame for everyone involved. 

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5. Offer Meaningful Support to Those Impacted

Provide resources like career transition coaching, resume help, LinkedIn support, or severance packages. This isn’t just a goodwill gesture—it preserves dignity and signals that your company values people beyond their roles.

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6. Care for the Team That Remains

“Survivor’s guilt” is real. After layoffs, team morale often drops. Make time for 1:1s, empathize with your team, give them space to recalibrate, and help them feel supported. 

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7. Realign the Team with a Rebuilding Plan

Don’t assume business as usual will resume - it's a gradual rebuild. Invite feedback from your team, revisit goals and clarify your priorities. This helps people shift from uncertainty to ownership so that everyone can move on from the experience.

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Your leadership shines,

when hard times are handled “well”. 

Layoffs will never be easy. But when handled with empathy, they don’t have to break trust. They can become a moment where your leadership proves what it stands for.

Leaders who communicate clearly and with empathy don’t just protect their team and its culture—they strengthen it.

Need help navigating what’s Next?

If you or your organization are navigating a layoff—or anticipating one—coaching can help. Whether it’s supporting transitioning employees or helping leaders show up with confidence, we’re here to help guide you through the process.

Learn more about how we support leaders during moments of change.