Best Practices for Conducting Layoffs with Empathy

In the previous blog, the importance of navigating layoffs with empathy was discussed at length and how fair handling can have a profound impact on your company's reputation. As a leader, being empathetic means making tough decisions while still showing compassion, dignity, and respect. While layoffs are never easy, if done correctly, they can be an opportunity to show your team that even in the most difficult circumstances, you prioritize people above all else. While layoffs are undoubtedly tough, there are companies that have successfully navigated this process with empathy and have set examples for others to follow. 

In the early days of the COVID-19 pandemic, an online marketplace for homestays had to make the heartbreaking decision to lay off around 1,900 employees—about 25% of its workforce. What made its approach stand out was its emphasis on empathy and support for the affected employees. The company offered severance packages that included 14 weeks of pay, a year of healthcare benefits, and career coaching. It also also gave affected employees access to job placement services and a network of hiring partners to help them find new opportunities.

This blog discusses some of the best practices for navigating layoffs in a way that maintains dignity, respect, and a sense of humanity throughout the process.

Top 5 Examples to Conduct Layoffs in a Gentle Way

1. Be Transparent and Honest Early On

One of the worst things you can do in a layoff scenario is to avoid or delay difficult conversations. If your company is facing financial challenges or restructuring, don’t wait until the last minute to communicate the potential for layoffs. Provide employees with as much notice as possible, even if that just means saying, “We are facing significant challenges and may need to make difficult decisions in the coming months.”

    2. Offer Personal Conversations, Not Group Announcements

When layoffs happen, it’s tempting to gather the affected employees in a large meeting and give them a generic, company-wide explanation. However, this approach misses the mark in terms of empathy. Instead, schedule individual or small group meetings with those impacted. Layoffs should never be delivered via email or through an impersonal announcement.

    3. Provide Clear, Practical Support

When laying someone off, it’s important not to focus only on the immediate task of severing ties. Employees need practical support to help them move forward. This means providing a severance package that reflects the employee’s tenure, clear information on benefits continuation, and ideally, access to outplacement services or career counseling. 

One of the most valuable ways to show empathy is by offering outplacement services—helping the employee get back on their feet, whether through resume coaching, job search support, or interview prep. Respect Their Dignity and Privacy

Layoffs are deeply personal, and employees may not want others to know right away. It’s crucial to respect their privacy during the process. Furthermore, treat the departing employees with dignity. Express your appreciation for their hard work, contributions, and time at the company. Even though the situation is difficult, thanking them for their efforts can help preserve their sense of worth.

    4. Support the Remaining Employees

It’s easy to focus on the employees who are leaving, but don’t overlook those who remain. Layoffs can cause a great deal of uncertainty and anxiety in the rest of your team. Employees may worry about their own job security or feel guilt about colleagues who have been let go. 

To mitigate this, be sure to communicate openly with your remaining employees about the reasons behind the layoffs and what the company is doing to stabilize and grow.

    5. Give Time for Emotional Responses

Everyone reacts to layoffs differently. While some employees may be relieved, others may feel a deep sense of loss or anger. Acknowledge that layoffs are emotional and give employees time and space to process their feelings. Don't rush the process. Allow employees the opportunity to express how they’re feeling. In some cases, offering a few days of paid leave to emotionally decompress can be incredibly helpful.

Moving Forward: Building a Culture of Compassion 

Empathetic layoffs should be part of a broader commitment to a culture of compassion in the workplace. It’s about more than just how you handle exits; it’s how you show up in moments of crisis, how you support employees through personal challenges, and how you maintain open lines of communication, even when things are difficult. If you’re a leader facing the prospect of layoffs, remember that empathy is your greatest tool. By being transparent, offering practical support, respecting privacy, and maintaining a human connection throughout the process, you can navigate these difficult decisions while preserving your company’s culture and the dignity of your employees.