In this edition of Q&A With Jane, we tackle a question many HR teams dread each December: should a company still host its holiday party after layoffs? With economic uncertainty, budget cuts, and morale already stretched thin, the wrong decision can make an organization look tone-deaf but skipping the event entirely can send an equally damaging signal of retreat. Jane breaks down the emotional, cultural, and reputational stakes behind year-end celebrations in turbulent times. She also offers actionable guidance on how to plan a gathering that’s modest, meaningful, and rooted in transparency rather than forced festivity. If your company is wrestling with this dilemma, Jane’s insights will help you navigate it with compassion and clarity.
A reader writes:
Hi Jane! Our company recently went through layoffs due to cost-cutting and a tough year financially. Now leadership is debating whether we should still host our annual holiday party. Some think it would boost morale, while others feel it would come across as tone-deaf and insensitive. Is it appropriate to hold a holiday celebration after layoffs, and if we do proceed, how can we make sure it doesn’t backfire?
Jane Harper’s advice:
I hear this question every year but it hits differently when layoffs are involved. The truth is, hosting a holiday party after restructuring is a delicate dance: it can either be a genuine morale lift or a PR disaster inside your own company. And which category it falls into depends almost entirely on the approach rather than the event itself.
Let’s talk about the risk first. When employees have seen colleagues lose jobs, watched budgets shrink, or felt the general unease of an uncertain economy, a big celebratory bash can feel painfully out of touch. Nothing erodes trust faster than mixed messages “We’re tightening belts… but here’s an open bar and a photo booth!” Employees notice those contradictions, and they remember them. Optics matter, and if the celebration feels like leadership is glossing over the emotional impact of layoffs, the event won’t foster connection it will deepen resentment.
But here’s the nuance: skipping the party entirely can also signal defeat, fear, or a retreat from culture-building. A thoughtful year-end gathering can become a moment of reinforcement instead of frivolity. Employees who have weathered a difficult year often appreciate acknowledgement, stability, and a sense of togetherness. A holiday event can serve as a small but meaningful symbol that the company values its people and is committed to moving forward. In times of uncertainty, rituals of appreciation matter more, not less.
The key is how you do it. Start with transparency: openly acknowledge that the year has been tough and that the event isn’t meant to erase that. Set the tone with gratitude, not celebration. Instead of lavish spending, opt for a modest, sincere gathering. It could be a team lunch, a volunteer activity, a cozy in-office event, or a simple appreciation ceremony. Make attendance optional without judgment. Remote and hybrid employees should have inclusive alternatives. And above all, anchor the event in recognition, not repartee. When you frame it as “Thank you for holding this company together during a hard year,” employees hear a very different message than “Let’s pretend everything’s fine.”
In short, yes, you can host a holiday party after layoffs. But only if the event is intentional, scaled to the moment, and authentically rooted in appreciation. A party isn’t the problem; insensitivity is. Handle the tone with care, and your team may walk away feeling seen rather than sidelined.
Warmly,
Jane
Are you facing a tricky workplace dilemma? Write to Jane Harper with your questions on workplace conflict, policy issues or people management problems. Your situation could be featured (anonymously) in a future column.
Don’t let the changing world of work derail your hiring instincts. Send in your HR queries with the subject line ‘Ask JANE HARPER’ at info@thehrdigest.com.
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