MIT Sloan Management Review Article on Ask Sanyin: What's the Right Way to Carry Out Layoffs?

We are going through an organizational transformation, which will involve a workforce reduction. How can we do this quickly and efficiently?

It’s tempting to deal with a difficult situation by getting it over with and moving on. But leaders making decisions that have a significant impact on employees’ lives should aim to be thoughtful and compassionate. Layoffs can shatter trust and leave remaining employees feeling insecure. Tending to emotions and caring about the ramifications for those who are let go as well as those who remain is critical.

The best example of how to do this comes from a leader I know who oversaw a reorganization that eliminated several thousand jobs. This leader was deeply invested in the whole process, and the compassion she demonstrated bolstered support for her leadership. I took the following lessons from her experience.

About the Author

Sanyin Siang is a CEO coach and leads the Fuqua/Coach K Center on Leadership & Ethics (COLE) at Duke University. Need advice? Send an email to Sanyin.

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