How to conduct a layoff

Here’s a free plan you can use for better results

Managing layoffs is a sensitive task that requires careful planning and consideration. Here’s a structured approach to help you navigate the process effectively:

1. Don’t do it alone

Team up with your company’s human resources representative. They’ll help you refine this plan, explain the layoff process, and rehearse your message so you won’t stumble or seem unprepared.

Some employers prefer to have a security professional available to escort laid- off employees to their workspace—help them gather personal belongings, prevent damage to files or equipment, and then escort them out of the building.

You should also have an attorney on call to ensure compliance with federal WARN regulations, as well as state and local labor laws.

2. Who to choose?

Most managers begin with a “last in, first out” approach, focusing on newer employees with the least seniority. If more reductions are needed:

Consider employees with weak performance or minimal contribution.
Identify roles that are no longer necessary due to changes in business plans, customer needs, technologies, or market conditions.
Evaluate whether current employees possess the skills needed for the company’s future.

Ensure the layoff does not disproportionately target individuals based on their age, gender, race, religion, or origin.

3. Where to tell them

Conduct the layoff in a private setting—such as a conference room or quiet office—to maintain dignity and confidentiality.

For remote employees, use a video call rather than a phone call or email to show professionalism and courtesy.

4. When to tell them

Layoffs can occur any time of year, but some months, days, and times are more considerate:

January-February and July-August are the most common months chosen for employee change. These months are selected because they coincide with beginning-of-year resets and mid-year adjustments, making them logical points for organizational changes.

Tuesdays and Wednesdays are preferred days for announcing transitions. Selecting these days allows employees who are leaving, sufficient time to process the news and inform their families before the upcoming weekend. This thoughtful timing helps ensure a smoother transition for everyone involved.

Between 10 AM and 11 AM is ideal. Sharing information during this period provides employees with ample time to absorb the news, and if necessary, sign up for needed unemployment benefits during regular business hours, that same afternoon.

5. Why the layoff?

Explain the reason clearly and simply. Avoid excessive detail. Common reasons for a layoff include:

Economic downturn
Declining sales
Mergers
Automation
Cost-cutting
Restructuring
Shifting market demands
Financial challenges
Outsourcing
Increased competition

6. Be prepared for emotions

As the manager, you know your employees. Most will respond respectfully to being let go, but reactions may vary: surprise, silence, tears, arguments, even gratitude.

A few may react angrily—yelling, cursing, storming out, slamming doors. If so, let them go.

If you anticipate a volatile reaction from an individual, notify HR in advance. They may assign someone experienced to handle that meeting, or coach you through it. You might consider having a security person present to help maintain calm.

If you need more help, contact the Rapid Response Manager at your state’s American Job Center for guidance. Their job is to help employers layoff large numbers of workers. I’m sure they have plenty of experience handling difficult people.

7. Greet the first person

Layoff one person at a time—it’s more respectful than a group meeting.

When the person arrives at your door:

Stand up and greet him or her by name: “Tillie, thank you for coming by.”
Introduce your HR representative: “Tillie, this is Lincoln, our HR representative.”
Invite Tillie to come in and sit down
Then, close the door and take your seat

8. Get to the point quickly

Start your conversation with a clear and simple reason for the layoff. Look the person in the eye while speaking. Also, do not blame any person for past mistakes or errors. Keep your attitude and tone neutral:

“Tillie, these are difficult times and we need to reduce costs. I’m sorry to tell you, but your employment with us will end today.”

“Let me also add, you did nothing wrong. This is not your fault. This is a layoff— not a firing. You will be eligible to collect unemployment benefits.”

Then offer a sincere compliment:

“Tillie, you’ve been a pleasure to work with. I appreciated how you handled that rush assignment with Teddy, back a few weeks ago. I’ll be glad to give you a solid recommendation for your work here.”

9. “Do you have any questions for me?”

The person may ask emotional questions to get you to change your mind. Look at the person as he or she speaks. Listen respectfully. Do not interrupt them. Do not respond to their emotional questions.

“Why me?”
“I thought I was getting a raise, not a layoff.”
“Am I the only one?”
“I need this job—my daughter’s wedding is coming up.”
“Could I be rehired if things improve?”

Maintain eye contact and respond:

“I’m so sorry, but this layoff is effective today and the decision is final.”

10. Then, shift the topic

Say, “We’d like to help make your transition easier. Lincoln, from HR, will explain your outplacement package.”

This may include:

Layoff termination letter
Health benefits extension (check with HR)
COBRA healthcare program
Final paycheck
Severance payment (check with HR)
Unemployment compensation
Job-search services (with your local American Job Center or private firm)
A copy of Surviving a Layoff (see Note below)
Other documents

11. HR will also collect company property

To protect company assets, ensure all property is returned or de-activated:

ID badges
Keys (buildings, offices, vehicles)
Tools and equipment
Access credentials (facial, voice, digital)
Software and email access
Phone and credit card services
Other items

12. Conclude the meeting

Ask, “Tillie, do you have a final question for me?” Then—

Stand up to signal that the meeting is over
Thank him or her for understanding
Walk him or her to the door
Wish him or her well
Offer a handshake
Introduce your security escort: “Tillie, this is Sam, he’s our security escort. He will escort you to your workspace so you can collect your personal property.”
Say goodbye and close the door

Final thoughts.

Layoffs are emotionally stressful for layoff managers too. Before meeting with the next person on your layoff list, take a few minutes to unwind:

Start by taking a deep breath. Inhale deeply through your nose. Hold that breath for several seconds. Exhale through your mouth. Then, do it again.

Sip some water
Take a brief walk inside the building

Then, debrief with HR and security. What parts of the layoff went well? What needs to be improved? How could we improve them?

After all of today’s layoffs are finished, speak with your remaining staff. Explain the changes and offer encouragement:

“Yes, we let some people go today. We will miss them. But now, we’re a smaller, stronger, smarter team. Together, we’re going to...”

Approach each layoff with sensitivity, respect, and empathy to ease the transition and preserve morale.

Best wishes,  

—Harry Dahlstrom, author

Note: To help your laid-off employees rebuild their self-esteem, manage their finances, and find new jobs quickly, include a copy of Surviving a Layoff in their outplacement packets.

Surviving a Layoff is a multi-million-copy bestseller, it’s affordably priced—at about the cost of a common greeting card.

It’s available in both English and Spanish.

Take a look—

Surviving a Layoff

The Job Hunting Handbook