The Leader Mindset #2

The hardest part of layoffs? Leading the employees left behind.

Author

Andy Noon, PhD
March 09, 2025

Table of Contents

The Hardest Part of Layoffs? Leading the Employees Left Behind. Five Actions to Take When Layoffs Happen.

Lately, job eliminations have been surging. Just last month, according to the BLS, layoffs rose 245% in February compared to January. The tech sectors and the federal government have been particularly hard hit, but no companies seem immune.

Recently, I had the unfortunate opportunity to prepare managers for an impending layoff. For some, it was one of the most terrifying, emotionally exhausting, and guilt-ridden experiences they will experience as a leader. They prepared an empathetic message, treated employees with dignity and respect, and aided in their transition. They were true professionals.

Unfortunately, for managers in this situation, the job is not done! What often gets overlooked is the emotional impact on the people left behind, the ones who didn’t lose their jobs.

Survivor guilt is real. Employees who remain often wonder, “Why them and not me?” They feel sadness for their colleagues, anxiety about their own job security, and uncertainty about what comes next. If leaders don’t address these emotions, engagement and productivity undoubtedly will take a major hit.

So, how can leaders help their teams process the change and stay focused on the road ahead? It starts with transparency, connection, and a shared sense of purpose.

Step 1: Acknowledge the Emotional Impact

Let’s be real, layoffs SUCK!!! They disrupt relationships and friendships. Typically, people spend more time with peers at work than with friends and family. For some, this event is like losing a loved one.

Ignoring this reality won’t make it go away. In fact, pretending everything is fine can make it worse. Employees may feel like leadership doesn’t care about them or their lost colleagues.

Instead, acknowledge the loss. In a team meeting, you might say something like:

"I know this has been a difficult time, and I want to recognize that losing colleagues we respect and care about isn’t easy. It’s okay to feel a mix of emotions, and I want us to support each other through this."

This simple acknowledgment shows that you care, which builds trust.

Step 2: Be Transparent About the “Why”

People don’t just want to know what happened; they want to understand “Why” it happened.

Layoffs often feel sudden, but there’s always an underlying reason for them. Whether it’s financial challenges, restructuring, or shifting priorities, employees deserve to know the truth. Otherwise, they’ll fill in the blanks with worst-case scenarios. The more specific you can be, the better people will understand the logic.

Of course, you may not have all the answers. That is okay. If there’s information you don’t know or can’t share, be upfront about it. Say:

"I know you have questions about why these decisions were made. Here’s what I can share… And if I don’t have an answer to something, I’ll do my best to find out."

Error on the side of transparency, as it builds trust, especially in tough times.

Step 3: Create Safe Space for Conversations 

After a layoff, employees are left with big questions:

➡️ How does this change my role?

➡️ Are more layoffs coming?

➡️ What’s the plan moving forward?

If leaders don’t address these concerns, employees will discuss them on their own, often through hallway gossip or IM complaining. Instead of letting speculation take over, create structured opportunities for discussion.

Here are a few ways to do that:

✅ Hold regular check-ins – Meet one-on-one with team members to understand their concerns, challenges and offer support.

✅ Host open Q&A sessions – Encourage employees to ask questions, even the tough ones.

✅ Follow up often – Even if you don’t have new information, checking in reassures people that leadership is engaged.

These conversations don’t have to be formal. Sometimes, just quick interaction where you ask, “How are you doing with all of this?” can make a huge difference.

Step 4: Involve the Team in Moving Forward

A critical mistake leaders make after a layoff is dictating all the changes from the top down. Remember, the goal is to re-engage them, and decisions “done to them”, have the opposite effect.

Instead, bring them into the process. If workloads are shifting, ask:

  1. What work can be streamlined or automated?

  2. Who’s best suited to take on certain responsibilities?

  3. What support do you need to be successful?

When employees have a say in how work is restructured, they’re more likely to commit to the new reality. It gives them a sense of control during an otherwise uncertain future. Don’t forget that they usually have better solutions because they are closer to the work.

Step 5: Rebuild Optimism and Purpose

Once you’ve addressed the immediate emotional concerns, it’s time to help your team look forward. Layoffs can make people feel like the company is in survival mode, and when employees believe they’re just waiting for the next round of cuts, motivation suffers.

Leaders need to reframe the narrative. Instead of dwelling on what was lost, focus on what’s ahead. This doesn’t mean pretending everything is perfect. It means reinforcing the team’s purpose.

Try linking their work to a bigger vision:

"I know things feel uncertain right now, but our mission hasn’t changed. What our team does still matters, and we have an opportunity to shape the future of this company together. Here is how our mission is aligned to the Company’s future…"

When employees see that their work has meaning and is still valued, they’re more likely to stay engaged.

The Bottom Line - Layoffs are hard. They impact everyone—the employees who leave, the leaders who make the decisions, and the team members left behind.

As the leader, this is where you must shine. Your goal isn’t just to get through this moment, it’s to build a team that emerges stronger on the other side.

🔖Save this post, as you never know when layoffs may impact you and your team.

Free Resouces

Focusing on employee development has lasting impacts. Here is a free development plan template you can use with your team or organization.

IDP Form Blank.pdf699.22 KB • PDF File

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I appreciate you reading my newsletter. I look forward to seeing you again next week.

Andy