Layoffs are rarely about just numbers. Behind every termination notice is a person who has shown up, contributed, and trusted their employer to act with integrity. When that trust is broken by a poorly handled layoff, the damage extends far beyond the individual being let go. It touches every remaining employee, every prospective hire, and every public impression of the organization’s values.
A friend of mine recently experienced such a breach. After 27 years of loyal service to a major health insurance company, he received no phone call, no meeting, no face-to-face acknowledgment of his contribution. Instead, his key card stopped working. On a Monday morning, he found himself locked out, redirected to the lunchroom along with dozens of others, and informed of his layoff en masse. An escort led him to his desk to gather his belongings. The experience felt more like a security breach than a respectful transition, and it left a lasting emotional scar.
That story is not unique, and it is not necessary. There is a better way. Layoffs are sometimes unavoidable, but the method of execution determines whether the organization emerges with its culture and credibility intact. This article outlines how companies can handle layoffs with fairness, professionalism, and most of all, humanity.
In this article, you will learn:
- The Right Timing and Setting for Delivering Layoff News
- Who Should Deliver the Message and How
- How Much to Communicate About the Process
- How to Determine Who Gets Laid Off
- Why Empathy and Emotional Intelligence Matter Most
The Right Timing and Setting for Delivering Layoff News
Timing matters more than most organizations realize. Executives should avoid delivering layoff news right before a holiday, long weekend, or bonus payout—unless the employee will still receive that bonus. Doing otherwise creates an unnecessary sense of loss that goes beyond job status and suggests a lack of respect. The optimal timing is typically Wednesday morning. This allows the employee the rest of the week and weekend to process the news and begin planning their next steps in private, away from the visibility and emotional strain of the workweek.
Equally important is the physical setting. News of a layoff should never be delivered through text, email, or mass communication. Group notifications diminish individual dignity. The right approach is a private, face-to-face meeting in a quiet and respectful setting. This is not just a professional courtesy; it is a fundamental requirement of treating employees like people rather than statistics.
Who Should Deliver the Message and How
Many organizations rely on HR to execute layoffs, assuming their expertise in compliance and legal protocols makes them the appropriate messenger. Legally, that may be true. Practically, it is a mistake. The message should come from someone with authority and personal connection: ideally, the employee's direct supervisor or a senior executive.
HR can and should be present to support the conversation, but the person delivering the message must be someone who has worked with the employee and can acknowledge their contributions with sincerity. This helps preserve a sense of personal respect and avoids the perception the employee is being dismissed by a faceless system.
The conversation itself must be clear, brief, and compassionate. Avoid euphemisms or vague explanations. Speak plainly, thank the employee for their contributions, and offer whatever support or severance package is being provided. Most importantly, do not rush the conversation. Allow space for emotion, questions, and a moment of closure.
How Much to Communicate About the Process
Transparency is valuable, but too much foresight can cause chaos. It is appropriate to inform teams structural changes are under consideration, especially when layoffs may be a possibility. However, organizations should not pre-announce specific dates or numbers. Doing so invites panic, speculation, and a drop in productivity. Vague warnings can be just as damaging as complete surprises.
Once layoffs are confirmed, the messaging to those staying must be just as deliberate as the messaging to those leaving. Remaining employees will be watching closely to see how their colleagues were treated. If the process appears cold, inconsistent, or opaque, organizational trust will erode. Leaders should clearly explain decisions were made through a fair and considered process, even if the details of who was affected and why are not disclosed.
The rationale behind individual layoff decisions does not need to be shared. Doing so invites comparison, resentment, and potential legal complications. It is enough to say the decision was difficult and was made in the interest of the company’s long-term health.
How to Determine Who Gets Laid Off
The decision-making process behind layoffs should be guided by structured, objective criteria—not arbitrary choices or expediency. A random draw may appear impartial, but it communicates a disturbing message: employee contributions and performance do not matter. Similarly, using seniority as the primary factor penalizes high-performing newer employees while protecting those whose value may have diminished over time.
Compensation-based layoffs can be tempting from a financial standpoint, but only make sense when all other criteria are equal. Letting go of high-cost employees can create the perception tenure or leadership roles are liabilities. It may also eliminate critical institutional knowledge hard to replace.
The best approach—if proper systems are in place—is performance-based. Employees should be evaluated based on documented results, competencies, and behavior. This assumes, of course, the organization has a consistent and credible performance review process. Without it, merit-based decisions will appear subjective or even biased. Leaders must ensure evaluations are up-to-date and defensible before making layoff decisions tied to performance.
Why Empathy and Emotional Intelligence Matter Most
Layoffs are not just financial events. They are emotional ones. The way an organization handles layoffs reflects its emotional intelligence and shapes its long-term reputation among employees, alumni, and customers.
Employees who are laid off deserve to leave with their dignity intact. That does not mean avoiding the hard truth, but rather delivering it with respect. Acknowledge their contributions. Offer support in the form of outplacement services, extended healthcare coverage, or even personal recommendations where appropriate. These gestures do not erase the difficulty of the moment, but they do demonstrate the organization values people—not just productivity.
Emotional intelligence in the workplace is often discussed in abstract terms. Layoffs are where it becomes concrete. Leaders who exhibit empathy in these moments earn the loyalty of those who remain, and often the respect of those who leave. The tone set during layoffs often determines how quickly a company can rebuild trust and performance afterward.
Takeaways
Layoffs are sometimes necessary, but cruelty is not. The true measure of an organization's leadership is how it manages its hardest decisions. Leaders who approach layoffs with care, structure, and empathy send a clear message about what kind of company they are building.
There is no perfect way to lay off employees, but there is a right way. One that respects the individual, supports the business, and preserves the dignity of everyone involved. When done right, it is possible for those affected to leave with not just their severance, but also their self-respect. That outcome should be every leader’s goal.
