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Tips for Preserving Company Culture During Layoffs

Apr 05, 2023
Tips for Preserving Company Culture During Layoffs
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Layoffs can be challenging for many companies, especially during harsh economic conditions and recessions, with some companies even letting go of up to 25% of their staff

Unfortunately, these necessary cost-cutting measures can sometimes take a heavy toll on employee morale while significantly impacting the company culture.

Therefore, companies must take proactive steps to preserve their company culture. While layoffs can be tough and emotional for everyone involved, minimizing their detrimental effect on company culture is still possible by implementing the right strategies and approaches.

This article will examine some best practices for preserving company culture during layoffs. We will provide actionable tips to help you maintain a positive and productive work environment, even in difficult times.


Most effective strategies for preserving company culture during layoffs

  • Communicating layoffs to employees

Letting someone know they have lost their job is never an easy task. But however tricky it is, you must ensure that you communicate layoffs in the best way possible, as it is a crucial component of preserving your company culture.

Amy De La Fuente, Director of Public Affairs at Bosco Legal Services, says, "It's important to approach layoffs with empathy and understanding for the individuals affected. While it's a difficult decision, it's crucial to prioritize transparency and open communication with employees."

When layoffs are not conveyed to employees effectively, it may result in resentment, disorientation, and a deterioration of trust between you and your employees. As a result, this communication process must be handled with considerable delicacy.

One of the first things you should do is plan your communication strategy. Objectively state who delivers the news, how the news will be delivered and what information will be shared.

It is best to be transparent about the reasons for the layoff and avoid beating about the bush. And even though your employees might not be happy about the news they received, they will appreciate it. 

As part of effective internal communication, you should also ensure that your employees are given enough notice before being laid off. Why? Advance notice can help employees prepare adequately for the change and make informed decisions about their future. You can even go a step further by providing resources such as career counselling or job placement opportunities to help ease the transition for affected employees.

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After announcing layoffs, you must try as much as possible to ensure ongoing communication. Your remaining employees will likely have questions or concerns that need to be addressed promptly and honestly.

Sustaining clear communication and engagement with your employees during a layoff can alleviate the anxiety and uncertainty that typically come along. Workmates internal communication software can assist you with transparent communication and keeping employees connected and informed, which is beneficial for upholding morale and protecting the company culture.

  • Maintaining employee engagement and motivation

Ensuring employees are invested and motivated is vital to the success of any business, and it's critical to closely track employee engagement and motivation, particularly during layoffs.

Keeping employee engagement and motivation intact amidst layoffs is pivotal because it not only influences the morale and output of the remaining employees, but it also has an impact on the employer's brand and reputation management.

Employees who are handled with honour and appreciation during challenging times are more likely to remain dedicated to the organization, and they could even transform into advocates for your business. Conversely, if employees feel neglected during layoffs, it may result in a negative perception of the company and produce diminished employee engagement.

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One way to improve employee engagement is by providing support and reassurance to your remaining employees. Because layoffs can be stressful and emotional, employees left behind may experience survivor's guilt or anxiety about their job security.

You can provide resources such as counselling, support groups, or career coaching to help alleviate some of the stress and anxiety your remaining employees may be feeling and resources to improve your employees' skills, knowledge, and study habits

Apart from offering assistance, an excellent approach to preserving a favourable workplace culture is acknowledging and compensating your employees for their diligent effort and valuable input.

Even during a layoff, it is important to recognize and reward employees for their contributions to your company culture. Workmates rewards and recognition software can help you celebrate your employees' successes and maintain a positive work environment, even during difficult times.

These strategies will guarantee employees stay committed and driven during challenging times, such as layoffs. This not only supports the retention of your company culture but also fuels your company's sustained growth and prosperity.

  • Staying true to the company's values

Experiencing a phase of layoffs can effortlessly result in a company losing sight of the fundamental values and principles that formed its foundation. Nevertheless, it's imperative to hold firm to your company's values if your goal is to safeguard your company culture.

At the heart of every company are values that guide and inform everything it does - from the products and services offered to the way it treats its employees. These values are more than just buzzwords or slogans - they represent the very essence of the company's identity and purpose.

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In the midst of layoffs, a business may be lured to forget or abandon these values, all in the name of short-term cost-cutting. Nonetheless, taking such a course of action can result in grave consequences for the company's culture and reputation.

By upholding steadfastly to your company's principles in times of layoffs, you can guarantee that every choice made is in sync with those values. This entails treating employees with respect and dignity, even if they are being let go, and supporting them as much as possible. It could also entail taking excellent care of your remaining employees and furnishing them with support and reassurance.

Remaining faithful to the company's values amid layoffs transcends merely doing the right thing. It is equally a smart business decision. How so? Companies that give precedence to their values and accord their employees the deserved honour and respect are prone to retaining top talents and maintaining a favourable market perception, even in the midst of difficult situations such as layoffs.

  • Creating a sense of community

Having people around during trying times is priceless. When people experience a feeling of being in a community, they are more likely to perceive that their peers value and support them, which can assist in coping with tough circumstances.

Ryan Hammill, Co-Founder and Executive Director of the Ancient Language Institute, states, "In the workplace, especially during periods such as layoffs, it's essential to cultivate a sense of community amongst the remaining employees. A way to accomplish this is by encouraging communication and transparency. Keep workers informed about the state of the company and what they can anticipate in the near future."

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Fostering cooperation and teamwork within your organization is another excellent method to promote a sense of community. You may establish cross-functional teams to tackle new initiatives or projects or organize regular team-building activities that enable employees to get to know one another better.

Suggesting fun and games during such a serious time may seem strange, but it is needed to lift morale and keep employees engaged. Activities such as virtual trivia contests or game nights will unite people and provide a sense of connection.

Once you apply these techniques effectively, you'll observe that you can build a strong sense of community and, consequently, uphold a workplace culture that is resilient, comprehensive, and devoted to the welfare of every member of the workforce.


Downsizing is unquestionably tough for any organization, and the influence on the company culture can be significant. Nevertheless, with all the appropriate approaches implemented, you can guarantee that you retain and even strengthen the sense of community within the work environment.

By giving precedence to emotional support, team-building activities, and honest communication, organizations can make certain their remaining employees feel appreciated, connected, and motivated.

Moreover, preserving company culture during layoffs can help retain top talent, attract new employees, and maintain a positive brand reputation.

In times of uncertainty, a strong and resilient workplace culture can be the key to weathering the storm and emerging even stronger on the other side.

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Author Bio:

This article is written by a marketing team member at HR Cloud. HR Cloud is a leading provider of proven HR solutions, including recruiting, onboarding, employee communications & engagement, and rewards & recognition. Our user-friendly software increases employee productivity, delivers time and cost savings, and minimizes compliance risk.

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