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How to Communicate Layoffs Effectively

Letting people know that they no longer have a job is no easy task. In recent months and years, a huge number of global corporations including Twitter, PepsiCo, Buzzfeed, Morgan Stanley, Salesforce, and Amazon have made headlines for mass layoffs, garnering wide media attention, and shedding light on the rise of a worrying trend- the absence of thoughtfully planned communication to deal with one of the most challenging events an organisation can go through.

Ultimately, most businesses are susceptible to business cycles, and some of them, dealing with a downturn, might reach a point where layoffs are inevitable to keep the business alive. However, organisations must bear in mind to carry off the layoffs and related communications with as little damage to employee morale and their corporate reputation as possible. A company can never amend for people who lost their jobs but what they can do is to be by their side, be fair, and provide practical support in the best way possible. 

Troubling media leaks, insensitive declarations via Zoom calls or memos full of corporate lingo have all been used to communicate layoffs in a manner that felt cold, heartless and abrupt. Laid-off employees as well as those retained deserve a respectful and empathetic announcement with proper future strategy and assurance from the organisation. As communicators, we can bring our expertise to the table to help senior executives deal with layoffs with empathy and humanity during layoffs. 

Communication plays a major role in this time of hardship and a proper synchronisation of internal and external communication makes it easier for the company to assure both the laid-off and existing employees.

Seven best practices for communicating layoffs 

The in-house communications team or the external PR partner must step in to help and counsel the executives in creating and executing a flawless communication strategy. Any communication of changes that impact a large number of employees, especially layoffs, needs to be conveyed with careful articulation, empathy and transparency. Listed below are seven practices that help communicate layoffs while maintaining brand reputation. 

  • Crafting a narrative with convincing reasons for the layoffs: The worst messaging tries to obfuscate and paint an untrue picture that those in the know (read your remaining employees) will not accept. Our advice is that organisations should be authentic and transparent with as much information they can plan to reveal, and make sure this information assuages the concerns of all stakeholders – starting and ending with the employees themselves. 
  • Avoid news leakage: Many organisations with poor control over news leakage have to face the consequence of employees learning about layoffs not from their own seniors but from stories in the press. A good communications team and partners must ensure there are no news leaks before the layoffs are communicated to people internally. Most importantly, the organisation should be proactively driving all information and communications with the comms teams firmly in the driver’s seat. 
  • Syncing the internal and external communication: It’s also important to synchronise the flow of information both internally and externally. If there is a delay in external communications, there is the risk that affected employees will break the news on their personal social media, before the organisation has had an opportunity to communicate its own version of the unfolding events. Still, it may be pertinent to prioritise internal communications over external.
  • Be extra kind to the affected employees: A good communications plan goes beyond just written or verbal communications, and backs it with actions. PR teams must ensure their organisation is providing full support to the affected employees in the form of outplacement services, career counselling and reasonable severance packages. Continued health insurance coverage for a certain period of time would be a boon at this time of crisis for the affected employees. The HR teams should also be exhorted to make extra efforts to keep in touch with the affected employees and provide necessary counsel. This will ensure that the remaining employees feel safe as they see their friends and ex-colleagues are being taken care of.
  • Use the CEO’s social media presence effectively: A traumatising event like mass layoffs is always best announced and communicated by the senior-most people in the room. Many CEOs or country heads use social media platforms extensively, and their own presence must be used to communicate the organisation’s side of the story effectively. For example, Mark Zuckerberg took to his owned social media platform Meta, the parent company of Facebook to announce a layoff in 2022.
  • Ensure two-way communications: As soon as the news is out, one can expect a flurry of incoming questions or concerns from affected employees, journalists, partners and investors both in private (internal Slack channels, WhatsApp groups or emails) or in public (Twitter, LinkedIn etc.) The comms team must have an effective listening and responding mechanism planned well before the news announcement, so that the organisation can quickly and effectively respond to all queries and dispel any misinformation or rumours. Also, replying to comments on social media, even from the general public, sends the message that the organisation is still listening and empathetic in times of a grave crisis.
  • Be seen as kind and empathetic: It bears repeating again that the first and foremost consideration when drafting any communications, posts or replies is to be seen as a kind and empathetic organization that regardless of the layoffs, still has the best interests of its people and its customers in mind. We advice involving the full strength of the HR, PR and social media teams to engage and communicate, and also measure and monitor the public sentiments towards the organisation during the announcement.

Effective communications can play a very significant role in mass layoffs to help companies traverse tough times with stakeholders in a transparent and compassionate way. Ultimately, communications has the power to rebuild public and critical stakeholder confidence in the company’s leadership and its ability to move forward, once the dust settles.

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