How to Support Employees During Layoffs: Best Practices for Employers

Layoffs are tough for both employers and employees. They may be necessary due to financial struggles, company changes, or market shifts. However, the way layoffs are handled can impact both those who leave and those who stay. Here’s a simple guide on how to support employees during layoffs with care, honesty, and professionalism.

1. Communicate Clearly and Early

Be Honest and Direct

Employees appreciate honesty. Avoid complex language and explain why the layoffs are happening. For example, if they are due to financial problems, share how the company tried to avoid this step.

Example: In 2020, Airbnb had to lay off 25% of its employees. The CEO, Brian Chesky, wrote a letter explaining the situation clearly and with kindness.

Give Advance Notice

If possible, let employees know in advance. In the U.S., companies with 100 or more workers must give a 60-day notice under the WARN Act. Even if it’s not required where you operate, early notice helps employees prepare.

2. Offer Fair Severance Packages

Severance packages can help employees financially and show that the company cares about them.

What to Include in a Good Severance Package:

• Salary Continuation – Pay based on how long they worked at the company.
• Extended Benefits – Health insurance and career support services for some time.
• Stock & Bonuses – Clear information on how employees can handle stock options or pending bonuses.

Example: In 2023, Google gave laid-off workers 16 weeks of pay plus two extra weeks for each year they worked, along with six months of health insurance.

3. Help Employees Find New Jobs

Resume & Interview Help

Assist employees with updating their resumes, improving their LinkedIn profiles, and preparing for interviews. Some companies hire career coaches to help.

Job Placement Support

Refer employees to open jobs, introduce them to recruiters, or create a job board for former workers.

Example: Microsoft and Twitter created LinkedIn groups and job boards to help laid-off workers find new jobs.

4. Show Emotional Support

Losing a job is stressful and can affect mental health. Offering emotional support is important.

Provide Counseling Services

Include free therapy or counseling in the severance package. Holding support meetings with HR can also help.

Example: In 2023, Meta gave laid-off employees access to mental health services to help them cope.

5. Keep Good Relationships & Consider Rehiring

How a company treats employees during layoffs affects its reputation and future hiring.

Consider Rehiring Former Employees

When business improves, rehiring past employees should be a priority. Stay in touch through alumni networks and LinkedIn groups.

Example: After pandemic-related layoffs in 2021, Airbnb rehired many of its former employees.

6. Support Remaining Employees

Layoffs affect those who stay as well. They may feel anxious or overworked.

Keep Morale High

• Hold Meetings – Give employees a chance to ask questions.
• Provide Job Security Updates – Share plans for the future to reduce fear.
• Recognize Employee Efforts – Thank and support remaining employees to keep them motivated.

Example: After big layoffs in 2023, Salesforce gave remaining employees bonuses and mental health resources to support them.

7. Learn from the Experience

After layoffs, review the process and see what can be improved.

Questions to Ask:

• Was communication clear and honest?
• Did employees get enough support?
• How did remaining employees feel, and what helped them?

How companies handle layoffs shows their values. Treating employees with respect isn’t just right—it’s good business.

– Patty McCord, Former Netflix HR Chief.

Final Thoughts

Layoffs are difficult, but handling them with honesty, care, and support makes a big difference. By being clear, offering financial help, career guidance, and emotional support, companies can protect their reputation and keep employees engaged.

What do you think about these strategies? Have you experienced a well-handled or poorly handled layoff? Share your thoughts in the comments!

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