Managing Layoffs Compassionately: Supporting Employees and Safeguarding Your Employer Brand

Economic shifts, evolving business models, and technological advancements have led many companies to make difficult workforce decisions over the past year and into 2025. As layoffs become an unfortunate reality in various industries, how these transitions are handled can have a lasting impact on an organisation’s employer brand, reputation, and future talent acquisition.

Candidates today place a high value on transparency, fairness, and how companies treat their employees, even during challenging times. Mishandling layoffs can lead to reputational damage, reduced employee morale among remaining staff, and long-term difficulties attracting top talent. In contrast, when companies approach workforce reductions with empathy and thoughtful planning, they can maintain trust and preserve their brand integrity.

Effective and compassionate layoff management starts with clear, honest, and timely communication. Employees deserve to understand the reasons behind the decision, the criteria used, and the support that will be provided. Wherever possible, offering notice periods, outplacement services, and mental health support can ease the transition for departing employees and demonstrate the company’s commitment to its workforce.

It is equally important to support the employees who remain with the company. Open communication and reassurance help prevent disengagement, fear, and the spread of misinformation. Transparent discussions about the company's future plans and ongoing support can help retain trust and maintain productivity.

In recent years, public perception has increasingly shaped employer branding. Sites like Glassdoor and LinkedIn amplify both positive and negative stories. Research shows that 86% of job seekers research company reviews and ratings before applying for a role, with platforms like Glassdoor being a primary source of this information. Furthermore, 67% of candidates consider a company’s response to reviews important when evaluating an employer. These findings underscore the importance of transparency and responsiveness in shaping how current and potential employees perceive a company. 

At Caerus Strategy, we assist our clients in navigating these sensitive situations with care and foresight. We provide strategic, tailored advice on workforce planning, communication approaches, and employee support mechanisms. Our goal is to help organisations manage transitions while upholding their values and strengthening their employer brand, even in the face of difficult decisions.

By prioritising compassion, clarity, and proactive planning, businesses can manage layoffs responsibly and protect their reputation as employers of choice in a competitive talent market.