We’ve all read the headlines about downsizings gone wrong.
The Zoom layoff that lasted two minutes. The company-wide email sent without warning. The mass termination announced via social media. These stories spread like wildfire—and not just because they’re shocking. They reflect a deep violation of trust, and they serve as cautionary tales for HR and business leaders everywhere.
Whether it’s due to economic headwinds, restructuring, or mergers, the process of reducing staff is a difficult one. How an organization handles these moments reveals its values more than any mission statement ever could.
When managed with care, transparency, and empathy, downsizing doesn’t have to mean damage—to morale, to reputation, or to those impacted. Here’s how to downsize with dignity and uphold your organization’s humanity during hard times.
Start with Transparency
Employees know when something is brewing. Uncertainty can be more damaging than the truth. If layoffs are on the horizon, communicate early, ideally before decisions are finalized. Honesty builds trust, even in the face of difficult news.
Avoid vague language or empty corporate jargon. Instead, clearly explain the why behind the decision—economic shifts, loss of funding, or strategic pivots. When people understand the rationale, they’re more likely to accept the outcome, even if they’re affected.
Lead with Empathy
Every person impacted by a layoff has a story. For some, it’s a financial burden. For others, a blow to their identity or career trajectory. Acknowledge that this is not “just business”—it’s personal.
Train your managers on how to deliver the news with empathy. Use one-on-one conversations rather than impersonal emails or group announcements. Allow space for emotion, listen without defensiveness, and offer compassionate, human responses.
Provide Practical Support
Losing a job can feel like losing part of one’s identity. Downsizing with dignity includes helping people land on their feet. Including outplacement services in the separation agreement provides reassurance, encouragement and expert advice during a stressful time. Outplacement isn’t just a “nice to have.” It’s a smart investment in people and in preserving the long-term health of your culture and employer brand.
In addition, whenever possible, provide access to mental health support or employee assistance programs (EAPs).
Consider keeping affected employees’ company email or LinkedIn access active for a short period so they can stay connected. A little flexibility goes a long way toward preserving relationships and your employer brand.
Protect the Survivors
It’s easy to focus on those leaving, but don’t forget the employees who stay. Survivor’s guilt, low morale, and fear of “who’s next” can quickly erode engagement.
Hold space for emotions, give your team time to process, and double down on communication. Let employees know what comes next and how the organization will rebuild. Transparency + stability = restored trust.
Reflect and Learn
Once the dust settles, take time to evaluate what went well and what didn’t. Was communication timely? Were people treated with care? Did you uphold your values? Build best practices into a roadmap to guide future actions. A company that learns from hardship becomes stronger and more resilient, not just in operations, but in character.
Final Thought
Downsizing will never be easy, but it doesn’t have to be cruel. When done thoughtfully, it can be a turning point for how your organization defines its culture. As HR professionals, we have the privilege and responsibility to lead with humanity. Let’s make sure we do it with dignity too.
By Laura Labovich, CEO, The Career Strategy Group
