From January through July 2025, more than 806,000 people in the U.S. were laid off—a 75% increase from last year. By the end of the year, an estimated 6 billion separations will occur across the workforce.
These aren’t just statistics. They represent real people and real businesses making choices about how to handle change.
How you handle exits writes the story people remember about you, your leadership, and your business. Layoffs will never be easy, but they don’t have to be careless. With planning and empathy, they can honor people and protect the organization.
The key is to think through every stage: what happens before, how you communicate during, and how you rebuild after.
Before Layoffs
Most companies plan layoffs in crisis mode when fear, pressure, and urgency drive decisions. The result is often chaos and confusion. True preparation starts when things are calm. That’s when empathy can be built into the process, not bolted on at the end.
- Communicate early and honestly. Don’t wait until the rumor mill takes over. Even when you can’t share details, transparency about business realities builds credibility and steadies people long before hard news hits.
- Plan ahead and train leaders. Most managers aren’t taught how to deliver difficult news. Rehearse. Role-play. Build a process that ensures layoffs are delivered privately, respectfully, and without surprise. When leaders are calm and prepared, everyone else feels safer.
- Decide with fairness. Define clear, defensible criteria before a single name is discussed. Random or reactive cuts don’t just invite legal risk—they signal a lack of integrity. Fairness protects both people and the organization.
During Layoffs
The moment someone learns they’ve lost their job is one they’ll never forget. For them, it’s personal and life-changing. For you, it’s defining. The goal is to handle it with truth, respect, and steadiness.
- Be fully present. Deliver news privately—1:1 if possible, cameras on if remote. Say the decision once, clearly and compassionately. Then pause. People need space to process shock and emotion before they can hear anything else.
- Give clear next steps. Cover exactly what comes next: benefits, severance, timelines, resources, and who will reach out for follow-up. Clarity reduces fear; uncertainty deepens it. If you don’t know an answer, promise when you’ll provide one, and keep that promise.
- Honor contributions and allow closure. Name specific work and impact. Offer time to wrap projects, say goodbye, or exchange contact information where appropriate. These moments matter. They help people leave with dignity, not disbelief.
After Layoffs
The real work begins after the layoffs end. Remaining employees are watching closely, feeling the loss, and wondering if they’re next. How you respond now determines whether the culture fractures or begins to heal.
- Acknowledge the loss openly. Silence breeds fear. Hold a meeting or town hall to explain what happened, why it was necessary, and what comes next. Give space for questions and emotions. People can handle hard truths better than half-truths.
- Reset expectations and workloads. Revisit priorities and redistribute work realistically. Burnout isn’t loyalty, it’s a warning sign. Give your team time to recover before demanding new performance levels.
- Rebuild trust through action. Say less, deliver more. Follow through on what you promise. When employees see consistency and care in how leaders show up after hard moments, belief in the organization slowly returns.
Layoffs are a defining moment for every organization—they reveal how your values hold up when it’s hard. Lead with empathy, and you’ll protect what matters most: trust, people, and culture.
Support for Leaders Navigating Difficult Decisions
Layoffs will never be simple, but they don’t have to be chaotic or careless. The way you lead through these moments shapes how people talk about your organization long after the decision has been made — and it sets the tone for how you rebuild.
If you’d like a clear, shareable version of the core principles in this article, we recommend watching our recent webinar with Kim White. It gives leaders a straightforward reference for what to do before, during, and after a layoff, so the process is grounded in clarity, consistency, and care.
