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Learning How to Conduct Layoffs the Right Way is a Business-Critical Skill

Layoffs mark a very sensitive time for a business, where emotions are running at an all-time high, and workers begin their day with panic, unsure of what is to come next for them. It is very important for leaders to know how to conduct layoffs correctly to ensure that the essential information is communicated with a sense of empathy and understanding, with a clear explanation of how things will proceed. Knowing what to say during layoffs is important not just to the workers who are being let go, but also to those who remain at the organization.

Bumble CEO Whitney Wolfe Herd just landed herself in hot water after she allegedly responded to employees reacting to her announcement with a “calm down.” It is difficult for employees to remain calm when their jobs and futures are put at risk for a reason that is not their fault, and a large part of being a leader is to handle such high-stress situations with the delicacy that it warrants. The best practices for layoffs may differ from business to business, but some standard considerations can apply across industries.

how to conduct layoffs

Planning out how to conduct layoffs correctly is an essential step that cannot be overlooked. (Image: Freepik)

Bumble CEO’s Layoff Announcement is Met with Backlash—How to Conduct Layoffs Correctly

Layoffs are bad news for employers and employees both, although the former does have a long-term success strategy to look forward to at the end of the road. Take Bumble’s reorganization efforts, for example. The company recently decided to proceed with its layoff plans, announcing that approximately 140 of the 240 job cuts would occur at its London offices. According to Inc., while communicating the news and indicating that the company was moving its “center of gravity” to the U.S., where the talent pool is, the staff responded with a thumbs down in a private chat. 

CEO Wolfe Herd allegedly responded to their reactions with a callous attitude, saying, “I see a lot of freaking-out emojis, y’all need to calm down.” She also added, “This is being taken out of context. I like London and I think everyone is overreacting to this, candidly…Everyone’s going to have to be adults in dealing with this.” 

While a flurry of emojis is not the ideal response to bad news, it is understandable if employees choose to react in the only way available to them, with no other avenue to express the full extent of their emotions. It’s up to the leadership to understand the situation and navigate it with the skills that are essential in a position of such seniority. If these alleged reports are true, it makes sense that Bumble’s layoff response has elicited criticism.

Well-Meaning Advice Will Not Always Be Well-Received—What Not to Say During Layoffs

If you just found out that you were losing your job, and I asked you to talk to an AI chatbot to cope with the situation, how would you feel? As far as we are concerned, being asked to find empathy from tech tools, particularly those that are one of the main causes for losing our jobs, would be upsetting. An Xbox Executive Producer had just that advice to give in response to the layoffs at Microsoft.

In a now-deleted post on LinkedIn, executive Matt Turnbull was sympathetic to the plight of those who were affected by the layoffs. Acknowledging that AI was a sensitive topic for many, he shared that after “experimenting with ways to use LLM Al tools (like ChatGPT or Copilot) to help reduce the emotional and cognitive load that comes with job loss,” he had devised some prompts that workers could use to improve their resume, network with old colleges for work, and find emotional clarity. 

While the advice was well-intentioned, it was ill-timed. Microsoft has not been shy about its heavy investments in AI, and it recently announced cuts across its organization—including the Xbox gaming division that Turnbull was a part of—to aid its future AI ambitions. The post was not well received, as many employees were not in a position to consider AI their friend. While his advice could be useful to many who were too overwhelmed to work on their resumes or put their best foot forward while job hunting, it was not the right time for the message. 

This serves as a good reminder that following such mass layoffs, employees are rarely looking for advice on how to improve or serve themselves better, but could instead do with active support during the transition.

What Are Some of the Best Practices for Layoffs Done Right?

If your organization is driven to choose layoffs as the best solution to move forward with its business goals, it is important to know how to conduct layoffs with grace and empathy. The announcement of job cuts will never be met with applause, but employers have a duty to employees to help them in the transition to their next roles. A good severance package and payout are a big part of this deal, but the manner of communication and the quality of the exit process are equally important.

Knowing how to conduct layoffs is not just a matter of scheduling the call and announcing the news, but also involves the organization’s handling of the matter in the months that follow. If you’re looking for best practices on employee termination procedures, we have some advice to share.

Explore Your Alternatives Carefully Before You Make a Cut

Layoffs are increasingly becoming the first response to business struggles, but this isn’t always the best solution. Employees are the life and blood of any organization, and it’s best to explore alternatives such as training, additional support, or cuts to future investments before settling on layoffs. Organizations like Google and UPS have recently turned to voluntary buyout offers as a way to give employees who were already uncertain about their jobs a way to leave before more are fired. This is one possible alternative, but there are others to consider as well. 

The story of Musk’s takeover of Twitter/X provides a great example of how an abrupt layoff attempt could leave an organization understaffed and desperate to bring employees back on board.

Plan the Layoffs Carefully Before the Announcement

Avoid announcing layoffs and keeping employees in suspense over who will be affected. Ensure that there is a clear strategy in place for who will be terminated and why, so the information can be communicated quickly. This does not mean that companies should keep it a secret and spring the news on employees out of the blue, but the organization should have a clear strategy for the layoffs in advance and be transparent when it’s time to make the announcement.

Prepare the Message Carefully and Avoid Over-explaining Irrelevant Information

Employees who are waiting to hear about the layoffs don’t want to wait through a long speech about how the business is poised for growth. It’s important to be direct to a degree, so the announcement can focus on which departments and teams will be affected and to what degree. The reason for the layoffs will not be as important to employees who are being let go, but it can help to clarify that any specific reasons being given are not targeted at employees for losing their jobs.

Expect Retaliation in Some Form

Some employees will respond to the layoffs with silence, while others may lash out in anger, but all reactions have some form of pain and frustration at their core. Expect that employees might respond emotionally, and be prepared to listen and acknowledge it with grace and understanding for what they are going through. Leaders will have to continue remaining respectful and open to suggestions, even if they are not in a position to undo the layoffs.

Provide A Fair Severance Package with Clear Benefits

If you’re wondering what to say during layoffs, one of the most important factors is to narrow down how employees will be supported during the transition. Employees will require both financial and emotional support as they transition to unemployment and the eventual next step in their careers. Monetary assistance will ensure they can look for their next jobs without the burden of their bills bearing down on them, while counseling, healthcare, placement programs, and other benefits can help them steady themselves and find work. 

From recommendation letters to access to re-employment services, there are a lot of real benefits that organizations can provide.

Hire from Internal Resources Rather than Looking for Talent Externally

Most organizations don’t stop hiring entirely when they are laying off workers. There are often open positions available at other departments that could be filled by employees who are already familiar with the organization. Assist employees with identifying roles they might be eligible for, and give them priority treatment while assessing whether they will be a good fit for the role. Not only will this aid employees, but it will also cut down on the time spent on onboarding. 

Reassure the Remaining Employees and Work on Engagement

As we’ve said many times before, layoffs don’t just affect the employees who are asked to leave—they also affect those who stay. Most employees will be heartbroken as many of their colleagues move out, and they will also be left to take on a much heavier workload during the change. They will also be overwhelmed by fear as they come to terms with the possibility that they could be next. Communication, connection, and clarity on the next phase will be essential in helping workers adjust to the change.

Learning How to Conduct Layoffs Correctly Is Critical for Any Business

Job cuts have never been easy, and it is unlikely that they ever will be. The emotional turmoil that follows such layoff announcements will always elicit a strong reaction from most, and it is essential to be prepared for the reaction. During such times, it is in an organization’s best interest to communicate clearly without being curt and listen empathetically to the feedback from employees.

Poorly timed advice or suggestions to count on AI are not the best strategy, and neither is the decision to tell employees to grow up and deal with the matter like adults. At the end of the day, employees spend the vast majority of their lives at work, and an abrupt end to their jobs can destabilize even the strongest of them. It is important to connect with workers, understand their experiences, and support them in the transition as best as possible.

Have more suggestions on how to conduct layoffs more effectively? Let us know what you think. Subscribe to The HR Digest for more insights into the ever-evolving landscape of work and employment in 2025. 

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Anuradha Mukherjee
Anuradha Mukherjee is a writer for The HR Digest. With a background in psychology and experience working with people and purpose, she enjoys sharing her insights into the many ways the world is evolving today. Whether starting a dialogue on technology or the technicalities of work culture, she hopes to contribute to each discussion with a patient pause and an ear listening for signs of global change.

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