Communicating Layoffs: Best Practices for Protecting Morale and Reputation

This year has seen massive layoffs in the tech industry as companies grapple with economic uncertainty and shifting market demands. From Google’s workforce reductions aimed at streamlining operations to Microsoft’s attempts to realign its business focus to Tesla’s cost-cutting measures to weather market fluctuations, tech giants are scaling down their workforces at an unprecedented rate. If you want an example of what not to do, watch Intel’s recent announcement. The company announced mass layoffs as part of its strategy to “deliver $10 billion in cost savings in 2025.” This approach framed the layoffs as a financial decision with little regard for the human impact. By focusing on profit margins and shareholder interests, Intel’s message seemed cold and indifferent, sparking criticism and eroding trust internally and externally. It exemplified how a poorly communicated layoff can damage a company’s image.