Why leaders must rethink how they conduct layoffs

Organisational culture is reflected most clearly in how people are treated, especially when the news being communicated is not positive.

The true test of a company’s values rarely appears on its best days; it becomes evident in moments of difficulty. Often, it plays out quietly in an HR meeting room or through a video call where someone is about to receive news that will significantly affect both their professional and personal life. While layoffs may at times be unavoidable, how this message is delivered leaves a lasting imprint on the organisation’s culture and reputation.

Yet, increasingly, many employees are not hearing this news from a leader or even a human voice. Instead, they are finding it through locked systems, automated emails, or abrupt digital alerts that their role no longer exists.

This shift, outsourcing life-changing conversations to technology, has been widely decried across industries. Layoffs have never been easy, but what has intensified the backlash is the growing tendency to use technology as a shield. 

Instead of conversations rooted in respect and clarity, many organisations are opting for convenience and speed, creating a process that is transactional, cold, and deeply impersonal. Condé Nast recently came under fire for firing four employees who confronted the HR head over layoffs at Teen Vogue.

 

 

 

 

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With large holding companies in the advertising and creative ecosystem now preparing for restructuring, humane layoffs are a point of conversation that is becoming more and more urgent. This is one of those moments that require maturity, responsibility, and leadership that does not hide behind systems.

The pitfalls of tech-led layoffs

Organisations often justify automated or technology-driven layoff notifications as efficient and consistent. However, such practices come at a far greater cost to trust, culture, and long-term reputation.

When a person receives the news of their layoff through a system-generated message, it degrades the years of effort, creativity, and loyalty they have invested. It signals that the organisation couldn't even make time for a five-minute conversation to acknowledge the contribution. No matter how strong the business rationale, the method of communication becomes the defining memory.

The effect is instant and palpable: leaving employees feel shocked and insulted; the ones who stay start feeling more anxious. Survivor's guilt strengthens, and productivity goes down as people begin to question their value and the leadership of the organisation.

In the industries of advertising, where talent, creativity, and collaboration lie at the heart of how companies perform, such ripple damage is harmful. A single instance of a mishandled layoff erodes trust built over years.

Accountability cannot be passed on

Layoffs might be a business necessity, but communicating them with dignity is absolutely a matter of leadership. The guiding role of HR teams is important, yet the conversation itself must be led jointly by senior leaders who own the strategic decisions.

When the CEO and senior management lead by relying on automated systems, they are inadvertently communicating avoidance. It conveys to people that leaders are unwilling to take emotional responsibility for the decisions that they make. And yet, leadership is most visible during tough moments. These conversations, though uncomfortable, reflect an organisation's values, maturity, and integrity far more than any internal communication or town hall ever could.

Employees deserve to hear directly from leaders who can explain the business context, acknowledge their contributions, and reassure them that the decision is not a reflection of their worth. These actions restore dignity even in moments of disappointment.

Supportive, not substitutive

The value that technology brings to offboarding processes is undeniable. It enables accuracy, ensures compliance, and streamlines documentation. But it should stay just that — a support system.

What technology cannot replace is the human element: empathy, tone, compassion, and presence.

A system can deliver information.

Only a human being can communicate comprehension.

Organisations must therefore draw clear boundaries: technology can facilitate the logistics, but it should never be used to deliver an initial message of separation.

The film Up in the Air highlights how companies can handle downsizing more humanely and effectively (Image credit: IMDB)

There is a framework that organisations should follow to ensure a dignified offboarding. This includes:

1. Lead with human interaction: Every layoff decision should begin with a personal conversation, either in-person or over video, delivered by both HR and the concerned leader.  This direct interaction allows the organisation to acknowledge the individual’s contributions, explain the context behind the decision, and address concerns with empathy and respect.
2. Provide managers with empathy training: Not everyone intuitively knows how to communicate sensitively. Organisations need to invest in training managers to deal with such conversations respectfully and confidently.
3. Provide comprehensive transition support: Offer resources such as career counselling, outplacement services, assistance with resumes and professional networking, including social media profiles and access to EAP services to help individuals navigate their next steps with confidence.
4. Be transparent with the remaining employees: Communicating the strategic rationale for decisions reduces fear and reassures people about the road ahead.
5. That the tone, timing, and follow-up reflect care: Every contact-formal or informal-must demonstrate to individuals that the organisation is committed to the principle of treating people fairly, even when times are hard.

Layoffs will always test the strength of an organisation's values. But what defines the culture is not the presence of difficult decisions-it is in the manner in which they are communicated and executed. Automated messages and system-driven notifications may be operationally convenient, but they fail the most fundamental test of the ability to act with empathy, transparency, and courage.

Technology can support HR processes, but it cannot replace human judgment in moments that demand compassion. A layoff is one of the most challenging decisions to convey, and that is precisely the reason why it must be delivered with care, respect, and a human touch.

-Upasana Raina, director, HR and marketing, Gi Group Holding India