9 Key Actions for Communicating Workforce Reductions

That is why I would like to propose 9 key actions to consider for this type of announcement.

1. Be transparent about the business situation

This process should be ongoing. For public companies, it is inevitable and essential, but private companies can also adopt the good practice of regularly communicating business results and performance to their employees.

This practice also helps align employees’ efforts, maintain a positive attitude, and increase awareness of business objectives, overall goals, and opportunities to contribute.

The aim is to avoid major surprises regarding the company’s situation.

2. Define and control the message

Everyone involved in the process must understand the reasons behind the decision, its scope, and key considerations, as well as the message or messages jointly defined by company leadership and the corporate communications team.

In situations like these, more than ever, a unified voice is essential.

3. Consider external stakeholders

While employees who are leaving and those who remain are the most immediately affected—and therefore the most important key audiences—the communication strategy must also take different stakeholders into account.

In Mexico, special attention should be paid to the timing and depth of communication with labor authorities and unions, depending on the level of involvement of the latter.

Likewise, investors, the media, clients, consumers, and suppliers will need to understand how these measures will affect their relationship with the company.

4. Clarity on the strategy to be followed

There must be clarity on how the action of carrying out a workforce reduction fits into the broader business strategy, whether to regain momentum or to define where the organization is heading with this decision.

To the extent possible, the message should explain why such a difficult decision is necessary and relevant within the broader context of the company’s current and future situation.

5. Sensitivity in the way the message is delivered

Of course, we are talking about people—the financial support of families, professional careers, and self-esteem that may feel harmed, reduced to resources rather than treated as human beings.

The message must be warm, respectful, and human, while making clear what the organization is doing to mitigate the impact of the change on operations and to support the reemployment of the colleagues who are leaving.

6. Openness to answer questions from employees who remain

After the initial and natural relief of keeping their jobs, the employees who remain will be left wondering whether they might be next, whether the situation will improve, or whether it would be wiser to take precautions and start looking for other options.

The organization can provide spaces and channels to address employees’ questions as effectively as possible, allowing them to express themselves, release pressure and frustration, and understand the why behind the decision.

7. Inclusion of middle management

Managers and middle management are vital as change agents in cascading information throughout the organization. Ideally, they should be included in the communication strategy, trained on the key messages, and prepared to play a critical role both in delivering the news and in helping their teams process emotions, concerns, and motivation.

8. Show appreciation for those who are leaving

Part of the sensitivity described in point number 5 involves expressing gratitude and appreciation to the employees who will be leaving the company.

It means acknowledging their contribution and the pain of their departure, the unavoidable nature of the decision, and how it fits together with other measures needed to preserve jobs and sustain the company’s performance.

9. Follow up on the results of the strategy

Once the worst has passed, the company cannot simply return to the status quo. It must capitalize on what has been learned, and teams can grow from the experience, so it is not a good idea to stop talking about the issue in the months that follow.

It is worth considering post-process communication mechanisms to keep employees informed about the impact on performance, while maintaining the transparency around business results mentioned in point 1.

This completes a cycle in which maintaining continuous, open, and transparent communication with employees places the company in a position of competitive advantage.

Communicating layoffs is painful, but at times necessary. It is unrealistic to think a process of this nature can be hidden or that no one will feel hurt.

The pain must be faced in order to heal it and move forward.