A layoff is a separation from a company due to business reasons, such as restructuring or downsizing, and is different from being fired for poor performance. The method of communication can shape the experience for the departing employee, as companies balance logistical needs with the personal impact on the individual.
Common Methods for Announcing Layoffs
In-Person Meetings
The traditional and often preferred method for delivering layoff news is through a private, in-person meeting. This direct approach is valued for providing a respectful and empathetic setting where an employee can receive the news and ask immediate questions. For the employer, it demonstrates respect for the individual’s contributions and can help manage the emotional tone of the conversation.
In-person notifications can be logistically complex, especially in large-scale layoffs or with a remote workforce. It requires careful scheduling and securing private spaces to ensure confidentiality and respect during a vulnerable moment.
Virtual Calls
With the rise of remote and hybrid work, announcing layoffs via video conference has become increasingly common. This method provides a face-to-face element when in-person meetings are not feasible, enabling a direct conversation regardless of geography.
The primary drawback is the lack of personal connection compared to a face-to-face meeting. A virtual call can feel detached, and technical glitches may add stress to the situation. The infamous Better.com layoff, where hundreds of employees were informed of their termination in a single group Zoom call, serves as an example of how this method can be perceived as cold if not handled with care.
Email Notifications
Using email to announce layoffs is the most impersonal method and is reserved for situations requiring immediate, mass communication. From the employer’s perspective, email is efficient for delivering a consistent message to many people at once, which can minimize the window for rumors to spread.
For the employee, receiving such significant news through an email can feel dismissive and cold. It removes the opportunity for immediate dialogue and can leave the individual feeling isolated. Companies that use email for the initial announcement are often advised to follow up with more personal forms of communication.
Phone Calls
A direct phone call is another method used to inform employees of a layoff, particularly when video conferencing is not an option. A phone call is more personal than an email, as it allows for a real-time conversation where the employee can ask questions and the manager can convey a more personal touch.
This method lacks the visual cues of in-person or video meetings, making it harder for both parties to gauge reactions accurately. The effectiveness of a phone call depends on the speaker’s ability to convey empathy and clarity through their tone of voice alone.
Who Delivers the News
The news is delivered by a combination of the employee’s direct manager and a Human Resources (HR) representative. The manager is present to provide context and acknowledge the employee’s contributions, leveraging their established relationship to make the conversation more humane.
An HR representative ensures the process is handled consistently and legally. They manage the technical aspects of the separation, answering questions about the severance package, benefits, and other logistics. This division of roles allows the manager to focus on the personal message, while HR handles the procedural elements.
For large-scale layoffs, a senior executive may make a company-wide announcement. This is followed by the individual meetings where the direct manager and HR deliver the news personally. The executive’s role is to frame the narrative for the company, while the manager and HR handle the individual conversations.
What Is Communicated During the Announcement
Communication during a layoff is direct and structured to convey necessary information clearly. The conversation begins with a straightforward statement that the employee’s position is being eliminated due to a reduction in force or company restructuring. Managers are coached to be direct to avoid confusion or false hope.
Following the initial statement, the employee is informed of their effective last day of employment and provided with a detailed overview of the separation package. This package includes:
- The amount of severance pay, which is based on tenure.
- Information on the continuation of health insurance benefits through programs like COBRA.
- Details on the payout of any accrued and unused paid time off (PTO), as policies vary by company and state.
- An outline of the next steps in the offboarding process.
- Information about any outplacement services the company may offer, such as resume assistance or career coaching.
The goal of the meeting is to provide all essential details while allowing the employee time to process the information without prolonging the difficult conversation.
Logistical and Legal Aspects of Layoff Announcements
Layoff announcements are governed by specific logistical and legal frameworks. A significant one is the federal Worker Adjustment and Retraining Notification (WARN) Act, which requires companies with 100 or more full-time employees to provide 60 days’ advance written notice of a mass layoff or plant closing. This notice must be given to affected employees, as well as to state and local government officials.
Some states, like California and New York, have their own versions of the WARN Act that may have stricter requirements, such as a longer notice period or applicability to smaller companies. This legislation gives workers and their families time to prepare for the loss of employment, seek alternative jobs, or enroll in training programs. Non-compliance can result in the employer paying back pay and benefits for the required notice period.
Concurrent with the notification, companies take immediate logistical steps. These actions include revoking access to company systems, email, and physical buildings to protect sensitive information. The process for returning company property, such as laptops and phones, is also communicated.
Communication with Remaining Employees
After layoff announcements are made, the focus shifts to communicating with the remaining employees. This step is important for maintaining morale and productivity, as a lack of information can lead to anxiety and rumors about job security.
This communication is handled through a group meeting, such as a town hall, or an email from a senior leader. The message explains the business rationale behind the layoff and outlines the company’s plan for moving forward, which may include redefining roles or departmental structures.
The goal is to reassure the remaining team members of their value and provide a clear vision for the future. Leadership makes themselves available to answer questions and address concerns. Openly addressing the situation helps to rebuild stability and allows the remaining staff to refocus on their roles and the company’s objectives.