What are the best practices for communicating layoffs or downsizing?
Learn from the community’s knowledge. Experts are adding insights into this AI-powered collaborative article, and you could too.
This is a new type of article that we started with the help of AI, and experts are taking it forward by sharing their thoughts directly into each section.
If you’d like to contribute, request an invite by liking or reacting to this article. Learn more
— The LinkedIn Team
Layoffs or downsizing are difficult decisions that affect the lives of employees and the reputation of the organization. As an HR consultant, you can help your clients handle this process with sensitivity, transparency, and professionalism. In this article, you will learn some best practices for communicating layoffs or downsizing to different stakeholders.
Communicating layoffs or downsizing is not just a legal or ethical obligation, but also a strategic opportunity. How you communicate can influence the morale, productivity, and loyalty of the remaining employees, as well as the public perception and brand image of the organization. Poor communication can lead to confusion, resentment, mistrust, and litigation. Effective communication can foster respect, understanding, support, and goodwill.
-
Herman Cahyadi
Chief People Officer at Gojek
Be open and tell the truth about the reason behind this. Then, during the implementation, be fair to the employee when it comes to the severance package. They already been us for a while, something to rewards the service plus we need to help them for the future, small gesture, it will means a lot for them.
-
Puja Sharma
Head - Talent Acquisition (Honeywell Connected Enterprise APAC , Global Technology,Ops) |Ex Amazon |Ex Dr. Reddy’s |XLRI Jamshedpur |Kasturba Medical College ,Manipal
Some critical factors to be considered are Transparency, Empathy, Thoughtful planning and execution with clear and customised communication approach as needful .
There are four main groups of stakeholders that need to be informed about layoffs or downsizing: the affected employees, the remaining employees, the managers and supervisors, and the external parties. Each group has different needs, expectations, and emotions, and requires a tailored message and channel. You should plan and coordinate the communication with each group carefully, and avoid sending mixed or inconsistent signals.
-
Venecia Carrasco
Layoffs, while challenging, are a necessary part of business at times. It's all about empathy. Plan thoughtfully, speak openly and honestly, and give departing employees the support they need. Be there for them as they transition. At the same time, let your remaining team know they're valued and secure. After the dust settles, reflect on how things went, with an eye to future improvements. This approach not only eases the process but also preserves your company's positive image.
-
Poliana Nunes
Recursos Humanos | Recrutamento e Seleção | Aquisição e Atração de Talentos | Implementação de Projetos | Recruiter | Headhunter
Defendo que comunicar demissões ou downsizing eficazmente requer abordagens personalizadas e empáticas para cada grupo de stakeholders. Para os funcionários afetados, a comunicação sensível, direta e com apoio para a transição de carreira é essencial. Os funcionários restantes precisam de informações claras e garantias de estabilidade. Os gerentes devem ser treinados para liderar suas equipes durante o processo, e a comunicação com partes externas deve ser precisa e tranquilizadora para preservar a reputação da empresa. Embora essas conversas sejam difíceis, são necessárias para minimizar o impacto emocional e manter a confiança em momentos de mudança organizacional.
Timing is crucial when communicating layoffs or downsizing. You should communicate as soon as possible, but not before you have a clear and coherent plan and rationale. You should also consider the potential impact of the news on the business operations, the employee engagement, and the media coverage. Ideally, you should communicate before any rumors or leaks spread, and avoid announcing layoffs or downsizing on sensitive dates, such as holidays, birthdays, or anniversaries.
-
Cigdem Katmerci
HR Manager @ Network Hardwares | Remote Workforce Management
In my opinion, communication is really vital: Plan Ahead: Anticipate questions and be prepared. Be Transparent: Clearly state reasons, avoiding sugarcoating. Empathy: This impacts lives; be compassionate. Face-to-Face: Personal touch matters; avoid mass emails. Provide Support: Offer outplacement services or job search aid. Address the Remaining Team: Clarify the future and allay fears. Avoid Blame: Focus on overarching reasons, not individual performance. Stay Available: Be there for further questions.
-
Rubina Patel Izzat
Head of HR/MNC/Media/Employee Engagement /Training&Development/Change Management/ HR Strategy/Talent Acquisition/Continuous Improvement/Business Process Reengineering/ HR Strategic Business Partner/HRIS / Policies & SOPs
Layoffs are not easy to deal with. Confidentiality is required when layoffs are planned. Every step is required to be followed carefully. Date of announcing layoff should be chosen considering that it should not fall close to festival holidays or national public holidays. Be prepared to get all sorts of reaction, from employees, media or external parties. Think before hand how to handle any sort of situation if happens related to layoffs. Keep your temperament in control, it’s extremely difficult to tell anyone that he is being laid off. A job of a single employee is connected with his/her whole family. Therefore, think it through, plan it carefully and review everything many times to avoid complications.
The content of your communication should be honest, clear, and respectful. You should explain the reasons and objectives behind the layoffs or downsizing, the criteria and process for selecting the affected employees, the benefits and support available for them, and the expectations and opportunities for the remaining employees. You should also acknowledge the emotions and concerns of the stakeholders, express gratitude and empathy, and provide contact information for further questions or feedback.
-
DHARM RAKSHIT
Creating a meaningful & Engaging workplace at Hero MotoCorp Ltd. Sr HR Leader ||Change leader || Executive Coach|| Mentor II Influencer
Lay off or downsizing communication is part of Tough Love which is hardly practised. The communication should be more empathetic as well employees being impacted must be aware of the reasons of such downsizing . Normally the employee thinks "Why me" but a good connect , empathtic communication by manager & genuine efforts to rehabiliate makes the process little painful
-
Sarah McLellan
Consulting & Commercial Leader | Talent Management, Leadership & Culture | Work Psychologist | Blog author - Make it Human
Providing a clear timeline on what will happen next, including opportunities to ask questions, who to turn to with individual concerns, and when follow up communications will occur. Committing to regular updates and being clear on when these will happen, can help create compassionate and transparent experiences, bringing structure and comfort in challenging times.
The mode and tone of your communication should be appropriate and consistent with the message and the audience. You should use multiple channels and formats to reach different stakeholders and reinforce your message. For example, you can use face-to-face meetings, phone calls, emails, letters, webinars, or videos. You should also use a professional and compassionate tone, avoid jargon or euphemisms, and listen actively and attentively to the stakeholders' reactions and responses.
-
Shivaditya Banerjee
Head HR India - Piramal Pharma Solutions I Welspun I Asian Paints I XLRI
The most difficult conversation is across the table with the affected employee. I remember video recording layoff role plays during MBA days, with different employee types - silent, aggressive, crying etc. But with experience, more than skills, the only thing that matters is showing empathy, and if that means hearing few bad words from the affected employee, one needs to take it on the chin with poise. It's important to acknowledge that even for managers leading the layoff, these conversations would be the last they'd love to do. It's also important that even in good times, we keep letting people know that no one is indispensable and there is no reason to believe that one day we don't sit on that table, on the wrong side.
-
Irina Manu
Human Resources Effectiveness & Technology Manager | Wellbeing Program Manager
What I learnt is that it helps communicating the decision at personal level and show that you care about the person in front of you, that you are counselling them first to process the information, then to help them understand the options available in a very transparent way and also, it helps to make an effort to give them a direction from there on. I remember being part of the team communicating layoff decision to a group of blue-collar employees who had a hard time understanding the technicalities behind the process and, what I did, was to simplify the message, focus on the tangible aspects and listen to them, individually as that helped me understand their needs and earn their trust and that made everything else just better.
Communicating layoffs or downsizing is not a one-time event, but an ongoing process that requires follow-up and evaluation. You should monitor and measure the impact of your communication on the stakeholders' satisfaction, trust, and engagement. You should also provide regular updates and feedback on the progress and outcomes of the layoffs or downsizing, and address any issues or challenges that arise. You should also recognize and reward the efforts and contributions of the remaining employees, and help them adjust to the new situation.
-
Hanaa Gamal El Dine
Group Head HR| HR Startup|Strategy Formulation|Change Management |Talent Management |Talent Acquisition|SOP Formulation| Employees Relations|
Prior communicating a layoff, The HR Expert should firsly tackle all the ways possible with the Stakeholders, to find alternative ways for employees, either a transfer, a shift, Job enlargement that helps in cost reduction..etc. If this would be the final tunnel to go through, and a decision of a layoff being reached, then, an open, structured, transparent face to face communication should be held with the employees, offering a suitable program of outplacement services to be endorsed by the company, as another sort of benefit, so, to give him compassion over empathy, by giving him a solid hand, in earning his source of living in the future. Such a program, will be a solid contribution, that goes just beyond an empathetic communication.
-
Pearl Anklesaria
You're the BEST in your field... Now come be the best in OURS.
I think first a generic townhall with all employees letting them know about the change and why the company needs to downsize and or have layoffs. Let everyone know that people who are affected will be notified after the townhall. This followed by 1-1 meetings (Manager, HR and employee) where numbers are small with the affected employees. If you have a large group then probably an email to notify people and still have some form of personal touch with meetings. The most important thing to remember when communicating the message is EMPATHY and CLEAR COMMUNICATION. Many have a family, a mortgage, a new born etc so its not easy to deal with the sudden layoffs. Where companies have Employee Assstance program then that should also be offered.
-
Mike Crewdson
Senior HR Business Partner | Assoc. CIPD
Be honest, be compassionate and be consistent. On the whole people will understand that businesses need to adapt and evolve to circumstances, even if they hold views about how this position arose in the first place. This is not a time to sugarcoat or spin the message. Keep your messaging factual, consistent to all recipients and think carefully about timing.
-
Nisha Nair
Business HR Head & Leader for Talent, Recruitment & People Operations at Sagarsoft (India) Ltd
When a company has to let some people go or make things smaller, it's important to be kind and honest. We can start the talk by being sincere and explaining why these decisions are being made. Give them lots of support like helping with finding new jobs and taking care of health needs. Let people ask questions and be honest in our answers. Looking at how Hewlett-Packard handled layoffs before, it's clear that being respectful is very important. Besides what the law says, let's try to do extra things like helping people connect with others and learn new skills. This caring approach, recognizing how changes affect people not only keeps everyone's spirits up but also creates a feeling of togetherness during tough times.