Best Practices for Compassionate Layoffs

Layoffs are never easy—for employees, managers, or HR teams. They represent some of the toughest moments an organization can face. Yet how leaders handle these moments not only impacts those leaving, but also sets the tone for the employees who remain. Done with care, transparency, and support, layoffs can protect morale, preserve trust, and demonstrate that the company values its people, even in times of change.

At Wallace Associates LLC, we believe that every transition should be handled with dignity and humanity. Here are some best practices for leading with compassion during layoffs:

1. Communicate with Clarity and Respect

When announcing layoffs, honesty and empathy go hand in hand. Provide clear reasoning for the decision, communicate early, and avoid vague language. Employees, both those impacted and those remaining, want to understand the “why” behind the change. Clarity reduces speculation and demonstrates respect for your team.

2. Provide Outplacement Support to Affected Employees

For employees leaving the organization, the experience can feel overwhelming. Outplacement services offer more than just career coaching—they provide a lifeline. By giving departing employees access to resume support, interview preparation, and personalized job search strategies, organizations show they care about their people beyond the paycheck.

The benefits extend beyond the individuals leaving: when remaining employees see that their colleagues are being supported in the transition, they gain confidence that the organization values their well-being too.

3. Support the Survivors

Often overlooked, the “survivor employees” who remain after layoffs may feel guilt, fear, or uncertainty. Addressing their concerns openly is essential for maintaining engagement and productivity. Share your vision for the future, reaffirm the company’s commitment to its people, and provide opportunities for them to process the change.

By showing employees that tough decisions are made thoughtfully and with compassion, you foster trust and resilience in your workforce.

4. Lead with Empathy, Always

Compassionate layoffs require leaders to balance business needs with humanity. A thoughtful process builds a stronger employer brand and strengthens your ability to attract and retain talent in the future.

At Wallace Associates, we partner with HR teams to deliver personalized outplacement services that help employees move forward with confidence. We believe that even in challenging times, organizations can lead with heart.

Change is hard, but how you manage it makes all the difference. By combining transparent communication, compassionate support, and tailored outplacement services, you can help employees land on their feet while protecting morale and trust across your organization.

If your team is navigating layoffs or restructuring, let Wallace Associates help you support your people every step of the way.