300 job cuts were announced today by Stripe, mostly engineers and analysts. The recent wave of layoffs in the tech sector serves as a stark reminder that change, particularly unexpected and disruptive change, is an inevitable part of the business landscape in 2025. We've worked with many teams going through changes over the years, but now seems like an important time to help people through the toughest kinds of change. For managers, the challenge lies not just in surviving these upheavals but in guiding their teams through them with empathy, resilience, and a focus on the future.
Understanding the Human Impact
Layoffs are deeply traumatic events. They create uncertainty, fear, and anxiety among those who lose their jobs and those who remain. Those who remain may experience increased workloads, heightened stress levels, and a sense of survivor's guilt. Recognizing and addressing these human dynamics is crucial for maintaining morale, productivity, and overall team well-being.
Three Key Areas of Focus
Effective change management during layoffs requires a multi-faceted approach:
- Individual Support:
- Empathy and Communication: Open and honest communication is paramount. Acknowledge the difficult emotions people are experiencing. Actively listen to their concerns, fears, and anxieties. Avoid platitudes or minimizing their feelings. For example, instead of saying "things happen" or "change is inevitable", acknowledge the specific challenges they are facing, such as concerns about their financial security or the impact on their family.
- Support Systems: Offer resources such as outplacement services, career counseling, and mental health support programs to those affected by layoffs. Ensure these services are easily accessible and that employees understand how to utilize them. Consider offering workshops on resume writing, interviewing skills, and job search strategies. Provide information on available benefits, such as severance packages, health insurance continuation, and outplacement services.
- Clarity and Transparency: Clearly communicate the reasons for the layoffs, the criteria used in decision-making, and the support available to those impacted. Avoid rumors and speculation by providing regular, honest updates. Be transparent about the future of the organization and the opportunities that may exist for those who remain. For example, if the company plans to restructure or hire for new positions, communicate these plans openly and transparently.
- Team Stabilization:
- Reassure and Re-engage: Reassure those who remain that their roles are valued and that the company is committed to their success. Acknowledge the increased workload and reassure them that the company is working to address these challenges. For example, hold team meetings to discuss workload distribution and identify potential solutions, such as cross-training or temporary reassignments.
- Address Increased Workloads: Review workloads and adjust responsibilities as needed to prevent burnout. Consider cross-training team members to increase flexibility and reduce reliance on individual contributors. Implement flexible work arrangements where possible to improve work-life balance. For example, consider offering flexible work hours, remote work options, or compressed workweeks to help employees manage their workload and maintain a healthy work-life balance.
- Foster Open Dialogue: Create safe spaces for team members to express their concerns, share ideas, and provide feedback. Encourage open and honest communication within the team and between team members and management. Conduct regular team meetings to address concerns, provide updates, and maintain open lines of communication. Establish clear channels for feedback and ensure that employee concerns are heard and addressed.
- Organizational Resilience:
- Review and Adapt: Use the layoff as an opportunity to review and adapt organizational structures, processes, and strategies. Identify areas for improvement and streamline workflows to increase efficiency and productivity. For example, conduct a thorough review of organizational structure and identify any redundancies or inefficiencies. Analyze key processes and identify areas for improvement, such as automation or process optimization.
- Invest in Upskilling: Invest in training and development programs to upskill the remaining workforce and prepare them for future challenges. This could include training on new technologies, leadership development programs, or specialized skill-building workshops. For example, if the company is transitioning to new technologies, invest in training programs to help employees develop the necessary skills. Offer leadership development programs to prepare high-potential employees for future leadership roles.
- Build a Strong Culture: Foster a culture of trust, transparency, and open communication to build resilience and strengthen team bonds. Encourage teamwork, collaboration, and mutual support among team members. Recognize and celebrate individual and team accomplishments to maintain a positive and motivated work environment. For example, implement regular team-building activities to foster camaraderie and strengthen team bonds. Recognize and reward employee contributions to build morale and motivate the team.
Leading Through Change
- Lead with Empathy: Demonstrate empathy and compassion for those affected by the layoffs. Acknowledge the emotional impact of the layoffs on your team and show that you understand their concerns. For example, visit with team members individually to express your support and offer assistance.
- Be Visible and Accessible: Be available to your team to answer questions, address concerns, and provide support. Make yourself accessible to team members and encourage them to come to you with any issues or concerns they may have. Hold regular office hours or virtual meetings to provide an opportunity for team members to connect with you.
- Focus on the Future: Help your team refocus their energy on the future and the opportunities that lie ahead. Share the company's vision for the future and how the team will play a crucial role in achieving success. For example, communicate the company's strategic goals and how the team's work contributes to those goals.
- Celebrate Successes: Acknowledge and celebrate team achievements to boost morale and maintain a positive outlook. Recognize and reward individual and team accomplishments to show your appreciation for their hard work and dedication. For example, publicly acknowledge team successes in company meetings or newsletters.
Moving Forward
Layoffs are undeniably challenging. However, they also present an opportunity for organizations to learn, adapt, and emerge stronger. By focusing on the human element, prioritizing employee well-being, and implementing a strategic approach to change management, leaders can navigate these difficult times and position their teams for future success.
