You Laid Off Staff - Now What?

Most companies thoughtfully plan for how to handle layoffs, but neglect to consider company culture in the aftermath

It’s a New Year, but unfortunately, not a new story…

Quarter one of 2026 has already kicked off with some heavy layoffs, including Meta’s decision, announced yesterday, to slash 10% of its workforce as they double down on AI and pivot from their focus on virtual and augmented reality. This comes following a crushing 2025, where annual job cuts where the highest they had been since the pandemic, topping out at a 58% increase of layoffs from the year prior.

Layoffs have always been a hard reality of running a business, and with companies following Meta’s lead with reliance on artificial intelligence, not to mention rising prices and rollercoaster growth, it’s likely that 2026 will be the same story.

Regardless of the reason for layoffs, however, they are often terrible for all parties involved: the employees losing their jobs, the leaders who have to tell them that, and the staff who remain, wondering what’s next and possibly (likely) shouldering more work in the face of losing colleagues.

And while many companies plan layoffs thoughtfully, with scripted announcements and severance packages, they often forget to plan for addressing how unsettled remaining employees are likely to be. Post-layoff culture recovery is not a guarantee, and it’s pivotal to be intentional in these moments.

Here’s how companies can do that -

Communicate Clearly (Which, Yes, Involves Transparency)

Employees are likely sitting with a very real fear of, “Am I next?” This is (let’s be honest), founded – and if leadership chooses to ignore that, acting in a “business as usual” manner, or hiding behind jargon and (literal) closed doors, culture will crumble. Instead, companies need to respond to unsettled employees by being as transparent as possible about the reason for layoffs and the plan moving forward. There will likely be tough questions and hurt or scared feelings from staff, but directly addressing those is critical to people’s sense of well-being.

Even if the news is, “We may realistically have to let other people go in Q2,” assuring staff that the process will always be transparent and thoughtful can go a long way to keeping culture afloat.

Accept Emotion

Often, leaders who have just done the very hard work of letting multiple employees go are either deep in their own feelings, or eager to just “move on.” When in these headspaces, it’s easy to get annoyed or even angry when staff express big feelings. If leaders let that show, though, they risk alienating staff even more.

Instead, it’s critical that employee emotions are validated. Employees who feel like they are psychologically safe to express emotion and heard when they do so are much more likely to re-engage with the company in positive ways. Remember: emotion will be part of the equation whether it is addressed or not; so address it.

Provide Feedback Spaces

It’s critical to offer multiple means for staff to express their thoughts to the organization in the wake of layoffs. We like pulse checks – mini one-to-ones with each staff member to offer them space to share their thoughts – and town halls – larger forums with the entire organization or team as a collaborative space to express thoughts and ask questions.

A caution that these spaces only work when staff’s emotions are validated, and their questions are answered as transparently as possible (sensing some themes here?) If the feedback feels like an echo chamber, allowing it will have the opposite of the intended impact.

Target Top Talent

Companies need to be aware of the most impactful performers in the organization and should be having regular “stay” conversations with those folks. (If this isn’t practice already, layoffs should signal the start of regular talent conversations.) Give top tier staff reassurance that their jobs are safe and that they are deeply valued by the company.

This is a great moment to invest in development opportunities for these folks, as well. Coaching sessions, for example, are a comparatively affordable way to continue to build their skills and to make top-tier folks feel valued. Asking them how they want to continue to grow and expand their impact will contribute to their wanting to stay.

Vibe into Values

Every company has values that undergird the work they do and the reason they do it. Aligned values are often what bring people to an organization in the first place, and taking some time to revisit them with remaining staff is smart. Remind people of the company’s mission and how their work directly impacts that. Talking about “what’s next” through the lens of values isn’t just good business; it’s a key engagement driver.

Ultimately, it’s what happens after layoffs that matters most.

While layoffs are disrupting, they are also a perfect time for leadership to listen, reflect, and put learnings into practice. Companies who authentically plan for culture in the aftermath of staff reductions can, with time, rebuild culture that’s even stronger.