How to Communicate Layoffs to Employees with Empathy

Layoffs—no HR professional or manager (or employee for that matter) wants to face them, but staff cuts are an unfortunate reality in the business world. Whether they happen because of economic downturns, changes in organizational structures, or a shift in strategic direction, layoffs can be a challenging process for everyone involved. How they’re managed can significantly affect an organization and its employees, as well as company brand and perception. In this guide, we’ll explore how to communicate layoffs and the best practices for doing so with empathy, honesty, and professionalism.

What to Consider Before Announcing Layoffs

Layoffs most often happen due to reasons beyond an individual employee’s control: economic downturns, mergers and acquisitions, organizational restructuring, or technological advancements.

But regardless of the reason, it’s important to approach layoffs with both strategy and empathy. Employees should understand that the decision is driven by legitimate business needs, not by personal performance.

If you or your business is thinking about announcing layoffs, these are some of the most important factors to consider:

Alignment & Coordination

Before any announcement is made, leadership and HR teams should align on the rationale, timing, and communication plan. A lack of internal coordination can create confusion or misinformation that damages morale and trust. Work closely with legal and compliance teams to confirm that all actions meet federal, state, and local requirements, including notice periods and severance obligations.

Timing

Whenever possible, you should avoid making announcements on Fridays or before holidays, when employees may have less access to support resources. Instead, choose a time when HR and leadership are available to answer questions and provide immediate guidance.

Confidentiality

Maintain confidentiality throughout the planning process. Limit discussions about potential layoffs to a small group of decision-makers until the final plan is approved. Premature information leaks can create anxiety and speculation that make the process even more difficult for those affected.

How to Prepare for a Layoff Conversation

Preparation is one of the most important steps in the layoff process. Before making any announcements, develop a clear and comprehensive plan detailing the reasons for the decision, the selection criteria used, and the support you’ll provide to affected employees. Careful preparation helps ensure that each conversation is handled with professionalism, empathy, and consistency across departments.

Your preparation should include not only what will be communicated but how and when.

The timing and delivery of the message can significantly influence how employees respond. Determine who will deliver the news, what format will be used (in-person, video, or written), and how follow-up discussions will be managed with both outgoing and remaining employees.

Before holding individual meetings, HR and managers should align on key details and expectations. These conversations are an opportunity to acknowledge the difficulty of the situation, express gratitude for the employee’s contributions, and outline the next steps with compassion and clarity.

When preparing for layoff conversations:

• Script your key talking points. Prepare a concise explanation of the business reason for the layoff, and ensure everyone delivering the message uses consistent language.
• Have all documentation ready. Include severance agreements, benefits information, and any outplacement or support resources that will be provided.
• Train managers on delivery. Equip them to handle emotional reactions, answer questions, and maintain empathy throughout the process.
• Coordinate with internal partners. Ensure HR, legal, and communications teams are aligned before meetings begin.
• Plan for next steps. Identify when and how follow-up meetings will occur, and make sure employees know where to turn for questions or assistance.

By thoughtfully preparing for these conversations, HR leaders and managers can minimize uncertainty, reduce stress, and demonstrate respect for employees, helping the organization navigate a difficult process with compassion and integrity

How to Communicate Layoffs to Employees (Step-by-Step)

Layoffs are some of the most difficult conversations an organization will ever have. Communicating the news with transparency and empathy can help maintain dignity, reduce anxiety, and protect trust among both departing and remaining employees. Below are best practices to guide leaders and HR teams through each step of the process.

1. Plan the Meeting Carefully

Whenever possible, communicate layoffs in person or via a live video call. This approach shows respect and allows for an open, two-way conversation. If in-person meetings aren’t feasible, ensure the virtual setup allows for privacy and direct communication. Avoid delivering the news through email or recorded messages, which can come across as impersonal or dismissive.

Before the meeting, coordinate with HR, legal, and management to ensure everyone understands the logistics and timeline. Prepare documentation in advance, including separation details, benefits information, and any severance or outplacement resources. Determine who will deliver the message and ensure that the same structure and language are used across all conversations to maintain fairness and consistency.

2. Deliver the Message Directly and Empathetically

By communicating openly and honestly, you show respect for employees and their right to know about significant changes that directly affect them. Avoid using overly corporate language to soften the message. While terms like “restructuring,” “streamlining,” or “rightsizing” may sound less harsh, they can feel evasive and diminish trust.

Here are some common phrases companies use, and why they can create confusion:

• Downsizing or rightsizing: Suggests an impersonal process rather than real job losses.
• Reorganization or restructuring: May obscure the human impact of layoffs.
• Eliminating positions or workforce adjustment: Shifts focus away from people and can feel dehumanizing.

Instead, be transparent and compassionate. Explain that the decision was based on business needs, not performance, and express sincere appreciation for each employee’s contributions.

3. Allow Space for Questions and Reactions

After delivering the news, pause to give employees time to process what they’ve heard. Emotions may range from shock and sadness to frustration or silence. Practice active listening: maintain eye contact, acknowledge feelings, and respond honestly when possible. If you don’t have an immediate answer to a question, assure employees that you’ll follow up promptly once details are confirmed.

Demonstrating empathy in this stage can help employees feel seen and respected, even amid difficult circumstances.

4. Provide Next Steps and Support Resources

Once employees have had time to absorb the news, clearly outline what comes next. Explain the timeline for their final workday, when they’ll receive final pay, how benefits will continue or end, and what resources are available to assist in their transition.

This is also the appropriate time to introduce any severance packages, outplacement programs, or support tools. Encourage employees to ask questions privately after the meeting if they prefer.

Offering Support to Outgoing Employees

Supporting outgoing employees through their transition is a critical aspect of a respectful and empathetic layoff process. This support not only helps employees who are directly affected but also sends a positive message to your remaining staff. Here are several ways you can offer support:

• Severance Packages: A severance package can include a lump-sum payment, continued salary payments for a period, or other financial benefits. The specifics of the package may vary depending on factors like the employee’s length of service, job level, and the terms of their employment contract.
• Unemployment Benefits: Generally, employees who have been laid off through no fault of their own are eligible for unemployment benefits. Provide information on how to apply. Inform the employee that there is typically a waiting period before they start receiving benefits. While you may not know the exact amount the employee will receive, explain that the amount will be a portion of the employee’s previous earnings and benefits are typically available for up to 26 weeks.
• Outplacement Services: These services can help laid-off employees find new jobs. Services include resume writing assistance, interview coaching, career counseling, job search workshops, and access to job boards or recruiting services.
• Continued Benefits: Depending on the terms of the layoff, you may be able to offer continued access to certain employee benefits, including health insurance (through COBRA), retirement plans, or employee assistance programs (EAPs).
• References and Recommendations: Providing a positive reference or recommendation can greatly assist outgoing employees in their job searches. You might also consider writing a recommendation on LinkedIn or another professional networking platform.
• Job Search Time: Some companies offer paid time off specifically for job searching or interviewing. This can be a significant support, especially for employees who may not have expected to suddenly find themselves in the job market.

Supporting Remaining Employees After Layoffs

While layoffs are most difficult for those directly affected, they also have a lasting impact on the employees who remain. “Survivor’s guilt,” uncertainty about job security, and shifts in workload can create anxiety and reduce engagement if not addressed proactively. How leaders communicate and support their teams after layoffs will determine whether the organization rebounds with resilience, struggles with morale and turnover.

Rebuild Trust and Transparency

After the initial layoff announcements, hold company-wide meetings to explain what happened, why the decision was made, and what the path forward looks like. Avoid vague reassurances; instead, be transparent about the organization’s current priorities and the steps leadership is taking to stabilize operations. A clear, honest narrative helps employees rebuild trust and focus on the future.

Address Emotional Impact

It’s normal for remaining employees to feel guilt, sadness, or even resentment after layoffs. Managers should acknowledge these emotions rather than rushing the team back to “business as usual.” Encourage open dialogue in one-on-one meetings, validate employees’ feelings, and remind them that their contributions are valued. If available, direct employees to mental health resources or employee assistance programs (EAPs).

Clarify Roles and Reset Expectations

After a workforce reduction, employees often need clarity on how responsibilities may change. Communicate new priorities early and provide updated role definitions to avoid confusion or burnout. Work with managers to review workloads, redistribute tasks equitably, and check in frequently to ensure no one feels overwhelmed.

Reinforce Culture and Connection

Moments of disruption are also opportunities to strengthen company culture. Reinforce your mission and values, and celebrate small wins that demonstrate progress and teamwork. Recognize employees for stepping up during transition periods, and remind them that their efforts are shaping the organization’s recovery and future success.

By proactively supporting remaining employees after layoffs, through transparency, empathy, and clear communication, organizations can maintain morale, reduce turnover risk, and begin rebuilding a sense of stability and purpose.

Legal and Compliance Considerations of Layoffs

As you plan and implement layoffs, it’s crucial to understand the legal landscape that surrounds such decisions. Legal requirements vary, including obligations regarding notice periods, severance pay, and non-discrimination. Always consult with legal counsel to ensure compliance and minimize potential liabilities.

Layoffs at companies with 100 or more employees must align with the requirements of the Worker Adjustment and Retraining Notification Act (WARN Act), which mandates that employers provide 60-day notice to employees prior to mass layoffs or plant closures. However, laws around layoffs can vary from state to state. While many states follow the federal WARN Act requirements, several have enacted their own layoff notice laws:

In addition to the WARN Act and state-specific laws, employers must also comply with other legal obligations, such as anti-discrimination laws, during the layoff process. It’s essential to consult with legal counsel to ensure all actions taken during layoffs are legally compliant and fair to your employees.

Continuing the Conversation After Layoffs

After the initial announcement, hold regular company meetings to update employees on the implementation of layoffs and address any concerns. Managers should also hold individual meetings with remaining employees to discuss any changes in roles or responsibilities and reassure them about the company’s future.

While layoffs are undoubtedly challenging, approaching them with honesty and support can help your company navigate the process more smoothly. Understanding layoff best practices and how to handle layoffs professionally can mitigate the negative impacts on your workforce and your company’s reputation.

By fostering open communication, treating outgoing employees with respect, and supporting them in their transition, you can maintain trust and morale among your remaining employees. Additionally, by ensuring legal compliance and providing ongoing communication, you can help your organization navigate this difficult period with minimal disruption.

Remember, layoffs don’t have to damage your company culture. If you’re facing this challenge, don’t hesitate to seek guidance and support.