Led by cuts at Amazon, Meta, Google, and Microsoft, 2023 began with more layoffs in one month than any other month during the pandemic. And the hits have continued throughout the year, affecting tech giants and startups alike. 1,030 tech companies have laid off workers in 2023, according to layoffs.fyi with data as of September 29. NerdWallet shares a detailed rundown of the largest layoffs in tech. 

But the layoffs spread beyond tech, too. Roku, Lyft, Buzzfeed, T-Mobile, and other large and small organizations were also impacted.   

According to Challenger, Gray & Christmas, Inc.’s “Challenger Report, August 2023,” the top five reasons companies gave for layoffs this year include:

• Market/economic conditions
• Closing (business unit, store, or company)
• Cost-cutting
• Restructuring
• Bankruptcy

It’s a list of reasons that resonate with any HR or business leader. 

While that doesn’t mean every company is facing imminent layoffs, what it does mean is that every HR leader should be prepared to execute layoffs as seamlessly as possible. Because if you are called upon to manage a layoff, you want to do it strategically, in a way that won’t damage your company culture. 

Managing layoffs to keep company culture strong

It’s a tough part of the job. While never easy, there are some things you can do to minimize the pain and keep your company culture strong during layoffs:

Invest in your company culture

Don’t wait until you have a challenge like layoffs or retention issues. Focus on building an inclusive company culture based on trust and shared vision. Set goals for your culture and model human-centric behavior from the top. 

Avoid making promises about the future

Instead of promising job security, demonstrate your commitment through actions. Offer stretch assignments, mentorship opportunities, and training so your employees understand that you see a path for them at your company. 

Acknowledge that layoffs are painful

There is no “good” way for an employee to get the news that their position is being eliminated. Avoid trying to sugarcoat the news. Instead, show compassion to demonstrate that you value the affected employee as a person and you have empathy for their situation.   

Be honest and transparent

Ideally, no one will be completely shocked by the announcement of layoffs. If leaders are regularly communicating with their teams and are open about challenges the company faces, both affected and remaining employees will have a greater understanding of the decisions being made. 

Communicate the rationale consistently

Make sure all managers are aware of how and why decisions were made for the layoffs. Whether it was specific product lines that were eliminated, or a widespread reduction in force that first considered those with low performance metrics, you want everyone to receive the same truthful message. 

Align managers around your plan

Just as you want all employees to receive a consistent message from managers, it’s equally important that these notifications are timed in a way that limits hearsay and rumors. Time the announcements carefully and equip managers with talking points to help them through these difficult conversations. 

Offer as much help as you can to those directly affected

When Salesforce laid off 7,000 workers at the beginning of the year, they offered a minimum of five months of pay, six months of health insurance benefits, and a minimum of two months of career resources. While this package may be out of reach for your company, think creatively about outplacement services. Challenger, Gray & Christmas point to services like career coaching, resume assistance, and digital branding services as key ways to strengthen your culture and your employer brand, while helping exiting employees land on their feet.  

The spike in layoffs this year reminds HR leaders how important it is to plan ahead. It’s all about nurturing company culture, being honest and empathetic, and offering support to those affected.  

And don’t forget that layoffs take a toll on HR leaders, too. It’s crucial to practice self-care (I share some tips here) and be willing to ask for help. We’re here for you. Our team of 25+ senior and mid-level HR Experts have managed dozens of layoffs and have worked with HR leaders to keep other priorities moving forward when layoffs are weighing so heavily on the team. Let’s chat about how Inspire HR can help.