Fast Company Daily How to keep a workplace functioning in the face of layoffs
Jul 8, 2025
Layoffs are on the rise, with record-breaking numbers in 2025, prompting leaders to rethink their strategies. Compassion and transparency emerge as key elements for maintaining morale and productivity during tough times. The conversation dives into effective communication and respectful treatment of departing employees, highlighting the importance of retaining top talent. Additionally, the challenges in incentive programs are addressed, as organizations seek to keep high performers engaged amidst uncertainty.
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Surge in Layoffs Explained
- Layoffs surged nearly 80% in early 2025 compared to last year, nearing record highs.
- Causes include government cutbacks, automation, AI, and sluggish sales across industries.
Dignity in Layoff Treatment
- Treat departing employees with dignity and humanity during layoffs.
- This approach preserves future relationships and signals company values to remaining staff.
Support After Layoffs
- Allow a grieving period post-layoffs but quickly address new workflow concerns.
- Use engagement surveys and redesign workspace to support remaining employees effectively.