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<aside> 💡 Tip: Use this template to organize important information for your team. Just replace this sample content with your own.

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Layoff Best Practices

In today's rapidly changing business environment, organizations often face the difficult decision of reducing their workforce through layoffs or restructuring.

While these actions may be necessary for the survival and growth of the company, they can also have significant consequences on the employees who are impacted, as well as on the overall morale and productivity of the remaining workforce.

That's why it's crucial for organizations to have a well-defined set of layoff best practices that can help them navigate through these challenging times with compassion, transparency, and fairness.

By implementing such practices, companies can not only minimize the negative impact on their employees but also ensure that the organization is well-positioned for success in the long run.

In this way, layoff best practices become an essential tool for any company that wants to manage its workforce effectively while maintaining a positive reputation and a strong culture of trust and respect.

DO’s & Don’ts

<aside> ✅ Do’s

• [ ] Be empathetic but don’t backtrack or second guess the decision
• [ ] Create timeline for management
• [ ] Have a script - be direct upfront
• [ ] Explain this is a business decision, not a personal one
• [ ] Move quickly - people talk
• [ ] Reiterate support and have resources available for them (letters of recommendation, resume writing help, etc.)
• [ ] Communicate clear transition dates (last day, benefits coverage, payment dates, etc.)
• [ ] Send a follow up email recapping all of the above
• [ ] Have 1:1 conversations when possible
• [ ] Review with your HR team to ensure you’re meeting all local laws and guidelines
• [ ] Have backup contractors for key roles - these could be former employees that we switch to hourly
• [ ] Have more than one manager in the meeting
• [ ] Let’s not trash talk anyone that got laid off or make them feel insignificant
• [ ] Have someone on standby to lock laid off individuals from critical access points - give them a chance to download/recover anything they need via request
• [ ] Pay for Resume Writing services and other job seeking stuff (Fiverr) </aside>

<aside> 🚫 Don’ts

• [ ] Surprise managers
• [ ] Forget to offboard critical logins
• [ ] Ignore remaining team - give them reassurance about why they weren’t cut
• [ ] Cut too shallow requiring a follow up cut in the future
• [ ] Make them feel bad for you - nobody cares
• [ ] Make jokes - this is a serious affair for them
• [ ] Blame others - take full responsibility and practice extreme ownership
• [ ] Ignore a severance package
• [ ] Forget to prepare an FAQ for the remaining team
• [ ] Do the layoffs all at once as a group
• [ ] Schedule the meeting too far in advance (anxiety inducing)

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Order of Operations

1. Have 1:1 Conversations with Key Employees (that are sticking around) - make sure they stay quiet (we haven’t decided who’s sticking around) - Week 1 (this could also be after the teamwide meeting) - there is a risk would leak to those getting laid off (optional)
2. Teamwide Meeting - allude to the struggle - Week 1
3. 1:1 Conversations with Layed Off employees - Week 2-3 (ideally all on the same day) - Carve out a Friday
4. Company wide slack message / email - Immediately after 1:1 Layoffs
5. 1:1 Check-ins with Key Employees to ensure they feel secure
6. Teamwide Meeting the following week (overcommunicate this is a reset with the future team so they dont think this is a second layoff)

Severance Packages

• Low Performers = 2 weeks
• Less than 24 months = 1 month
• More than 24 months = 2 months
• Any variation from above will be noted by the manager
• Consider extending benefits beyond above