University of Kwazulu-Natal

How Do Compassionate Leaders Handle Layoffs

Bonisiwe Shabane
-
how do compassionate leaders handle layoffs

When it comes to the uncomfortable topic of layoffs, the research is clear: avoid layoffs where you can and take as long a strategic view as possible. Layoffs can have a highly detrimental impact on the culture of an organization by eroding trust, undermining shared values, and increasing negative employee behaviors. It is a traumatic event for the whole organization, and especially for the one being terminated. Yet there are times, like the current COVID-19 crisis, when layoffs may be the unfortunate and unavoidable reality for your organization. How can you lead compassionately while carrying out such a painful agenda? Perhaps if you’ve ever been laid off, you still remember the emotions of that difficult moment, and can viscerally understand the magnitude of your colleagues’ pain.

Allow these feelings of empathy to help guide you into compassionate action. To lead compassionately through layoffs requires an especially elevated sense of concern for your team members losing their job. This is not about you. And yet, the starting point for accomplishing this may seem counterintuitive: It is important to start with yourself. Your ability to focus on your team members is dependent on your ability to engage from a grounded and anchored personal position. While these layoffs are much more difficult for your terminated colleagues, it is still difficult for you.

Be willing to acknowledge your own discomfort in these circumstances. Acknowledging (to yourself only) that this is difficult for you strengthens your ability to acknowledge to your team members how difficult this is for them. Layoffs are never easy for businesses or employees who are let go. Even though they may be necessary due to restructuring, cost-cutting, or changing business priorities, layoffs can have a serious emotional and professional impact on those affected. As an HR or business leader, it’s important to approach the process with empathy and transparency and provide real support to help your employees transition to their next role. Prepare for the Process: Before announcing layoffs, take time to create a clear plan.

This means understanding why the layoffs are happening, determining how employees will be selected, and setting a timeline for the entire process. The more prepared you are, the smoother the communication will go. It is strongly recommended to consult with an Employers Council attorney to ensure legal compliance. Communicate Early: Once decisions have been made, it’s essential to communicate with affected employees as soon as possible. Give them as much notice as you can and make sure they know how the process will unfold. Clear, open communication helps avoid confusion and allows employees to process the news.

Keep It Compassionate: Layoffs are emotionally challenging for many, and the way you handle the conversations can make a big difference. Take a human-centered approach by speaking to employees one-on-one, not in a group. Show empathy and respect —acknowledge the difficulty of the situation and listen to their concerns. It’s a tough moment, but your approach will set the tone for the entire process. However, you don’t want this to be a drawn-out meeting either. Sometimes, a quick meeting is the kind approach.

Provide Financial Support: Offering a severance package is not just common practice — it’s often a legal requirement. Make sure it’s fair and in line with industry standards. Beyond pay, include benefits like continuation of health insurance, unused vacation days, and career transition support. It is strongly recommended to have an attorney review severance packages prior to giving them to employees. Employers Council can help you draft a legally compliant one. Layoffs are never easy, for employees, managers, or HR teams.

They represent some of the toughest moments an organization can face. Yet how leaders handle these moments not only impacts those leaving, but also sets the tone for the employees who remain. Done with care, transparency, and support, layoffs can protect morale, preserve trust, and demonstrate that the company values its people, even in times of change. At Wallace Associates, we believe that every transition should be handled with dignity and humanity. Here are some best practices for leading with compassion during layoffs: When announcing layoffs, honesty and empathy go hand in hand.

Provide clear reasoning for the decision, communicate early, and avoid vague language. Employees, both those impacted and those remaining, want to understand the “why” behind the change. Clarity reduces speculation and demonstrates respect for your team. For employees leaving the organization, the experience can feel overwhelming. Outplacement services offer more than just career coaching, they provide a lifeline. By giving departing employees access to resume support, interview preparation, and personalized job search strategies, organizations show they care about their people beyond the paycheck.

The benefits extend beyond the individuals leaving: when remaining employees see that their colleagues are being supported in the transition, they gain confidence that the organization values their well-being too. Virtual and in-person workshops for elevating individual or team leadership skills Individual coaching for all levels of leadership—from first-time managers to C-suite executives Customizable programs for your team's unique needs and leadership goals See all of our leadership solutions that help your team level up. Layoffs are one of the hardest things you’ll ever have to lead.

It’s hard to tell someone they’re being laid off. How your organization manages this difficult process says a lot about your company. Here are five ways to manage a layoff with compassion and grace. Get to the point. With all the layoffs in the news, there’s a good chance your employees know their future with your company may soon end. When conducting a layoff meeting, be succinct and enter the meeting prepared to deliver the news.

“Due to our merger, we’ve had to make some tough staffing decisions. It’s with deep regret that I must inform you that the company has decided to eliminate your role.” In my experience, can leaders deliver bad news (e.g. layoffs, setbacks) with transparency and compassion is not just about being honest; it’s about genuinely respecting the individuals affected and maintaining trust. I’ve been researching leadership communication for years, and I want to share what I’ve learned about how transparency and compassion are essential in difficult situations. From what I’ve discovered, the way we deliver bad news significantly impacts morale, engagement, and long-term trust.

can leaders deliver bad news (e.g. layoffs, setbacks) with transparency and compassion effectively? Absolutely—when they prioritize honesty, clarity, and empathy. I believe that transparency involves sharing the reasons behind tough decisions openly, while compassion requires acknowledging the emotional impact on those involved. This combination helps mitigate feelings of betrayal or confusion and fosters a culture of trust, even during challenging times. In this article, I want to provide practical insights and personal reflections on how leaders can deliver bad news (e.g.

layoffs, setbacks) with transparency and compassion, ensuring that the process respects everyone involved while maintaining organizational integrity. So, let’s explore how to navigate these difficult conversations with authenticity and empathy. In my experience, implementing deliberate strategies is crucial when considering can leaders deliver bad news (e.g. layoffs, setbacks) with transparency and compassion. Here are some of the most effective approaches I’ve found: I recommend that, before delivering bad news, I always prepare thoroughly.

Understanding the facts, the reasons behind the decision, and anticipating questions helps me communicate with clarity. In my opinion, preparation is key because it allows me to be honest without coming across as evasive. When I’ve prepared, I can better balance transparency with sensitivity, making sure I don’t overwhelm or alienate my team. I funnel all of my lived experience (good and bad) into services, trainings, and offerings to help create healthier workplaces and inspire meaningful career changes. After the outpouring of love about being laid off, I’m thrilled to announce my new program, The Compassionate Cut: a nonprofit layoff support program, with my collaborator and wellbeing strategist Loretta Turner. We believe that you can do layoffs with compassion.

The Compassionate Cut is a Nonprofit Layoff Support Program that equips board members and executive leadership with the mindset, tools, and planning strategies to navigate layoffs with care. We support you and your staff in making impossible decisions while honoring staff dignity, minimizing harm, and ensuring organizational continuity. Our program balances the practical with the emotional and offers Board + Executive Training, Leadership Coaching, and Staff Workshops + Support Circles (for those who are laid off and for those who remain). All services can be offered a la carte or in a comprehensive package. We believe that hard decisions can be human-centered and that this moment in history calls for leaders to stay true to their values and to care for staff even during the toughest times. Did you know that as of the end of April 2025, U.S.-based employers had announced 497,052 job cuts in just the first four months of the year?

Layoffs are never easy—especially for the leaders delivering the news. Laying someone off isn’t just about delivering bad news. It’s a delicate moment affecting trust, morale, and your company’s reputation. But with empathy, preparation, and clear communication, you can handle it in a way that preserves dignity for everyone involved. How you handle this moment matters—not just for the person leaving, but for everyone watching. In this blog, we’ll show you how to manage layoffs with empathy and professionalism—using real examples, best practices, and practical tips to guide you every step of the way.

Laying off employees is a difficult but sometimes necessary decision for companies to stay competitive and profitable. During tough times, companies often face financial pressure, and reducing labor costs is a primary way to save money. Additionally, strategic shifts like restructuring, mergers, or changes in focus can lead to certain roles becoming redundant. Companies also engage in downsizing to realign resources with new goals or improve overall performance. Lastly, in mergers and acquisitions, job overlaps are common, and layoffs may be needed as companies streamline their operations. While layoffs are challenging, they’re sometimes essential for long-term success and sustainability.

People Also Search

When It Comes To The Uncomfortable Topic Of Layoffs, The

When it comes to the uncomfortable topic of layoffs, the research is clear: avoid layoffs where you can and take as long a strategic view as possible. Layoffs can have a highly detrimental impact on the culture of an organization by eroding trust, undermining shared values, and increasing negative employee behaviors. It is a traumatic event for the whole organization, and especially for the one be...

Allow These Feelings Of Empathy To Help Guide You Into

Allow these feelings of empathy to help guide you into compassionate action. To lead compassionately through layoffs requires an especially elevated sense of concern for your team members losing their job. This is not about you. And yet, the starting point for accomplishing this may seem counterintuitive: It is important to start with yourself. Your ability to focus on your team members is depende...

Be Willing To Acknowledge Your Own Discomfort In These Circumstances.

Be willing to acknowledge your own discomfort in these circumstances. Acknowledging (to yourself only) that this is difficult for you strengthens your ability to acknowledge to your team members how difficult this is for them. Layoffs are never easy for businesses or employees who are let go. Even though they may be necessary due to restructuring, cost-cutting, or changing business priorities, lay...

This Means Understanding Why The Layoffs Are Happening, Determining How

This means understanding why the layoffs are happening, determining how employees will be selected, and setting a timeline for the entire process. The more prepared you are, the smoother the communication will go. It is strongly recommended to consult with an Employers Council attorney to ensure legal compliance. Communicate Early: Once decisions have been made, it’s essential to communicate with ...

Keep It Compassionate: Layoffs Are Emotionally Challenging For Many, And

Keep It Compassionate: Layoffs are emotionally challenging for many, and the way you handle the conversations can make a big difference. Take a human-centered approach by speaking to employees one-on-one, not in a group. Show empathy and respect —acknowledge the difficulty of the situation and listen to their concerns. It’s a tough moment, but your approach will set the tone for the entire process...