Navigating Layoffs: Understanding the Impact on You and Your Team
Photo credit: Joshua Hoehne | Unsplash
Cuts at Amazon, Microsoft feed fears of Big Tech reset — The Seattle Times
Major companies announce massive layoffs in 2025 amid AI transformation and economic restructuring: Intel, Meta, Starbucks among many — The Financial Times
From retail to tech, here are the 10 corporations that recently announced mass layoffs — Fortune
A Familiar Story with a Few New Twists
Here we go again. Big layoffs are still happening in the tech industry and elsewhere.
It’s a story we’ve come to know well. During the pandemic, tech companies and many others expanded rapidly to meet soaring demand. When the surge faded and growth slowed in 2022, the hiring boom gave way to a wave of cuts.
At the same time, there’s been a reset everywhere, with the rapid expansion of AI, automation and robotics transforming how companies think about work. Industry leaders say they are “right-sizing” to get leaner and more efficient. Some say there’s a “herding effect” - firms downsizing simply because others are doing it. Yet this time feels different. Many of these same companies are reporting record profits and pouring billions into AI and automation, reallocating resources.
Across sectors, from tech to finance to food and retail, leaders are cutting staff even as they invest in technologies designed to do more with less. The result is not just a correction to pandemic-era hiring, but a deeper transformation of how work gets done and who does it.
The Human Impact
Layoffs affect everyone - those who lose their jobs, those left behind and the leaders who terminate positions, often under pressure of forces beyond their control.
If you’ve been personally affected by a layoff, your job now is to make sense of what’s happened. Being the one who’s laid off can feel like a gut punch - a shock that brings grief, fear, anger and self-doubt. It can even send you through the familiar stages of loss that Elizabeth Kübler-Ross described. These stages aren’t linear or predictable. Shock often arrives first: “Why me?” Acceptance comes later, after time and reflection have passed.
Those left behind may also be struggling. Survivor’s guilt is real, especially if you’ve lost a dear work friend or trusted colleague. You may wonder if it should have been you and even hold your colleagues’ work in higher esteem than your own. Fear and uncertainty creep in. Will I be next?
And for many, the harder truth is this: when the dust settles, there’s simply more work to do with fewer people to do it. Teams are stretched thin. Projects don’t disappear; they get redistributed. The people left behind are often balancing bigger workloads, picking up responsibilities, all while trying to stay positive and committed. Trust and loyalty to the company may fray. Leaders’ promises can sound hollow when their teams fear more cuts and are running on fumes.
Stories of Disconnection and Grace
One team leader recently described the month after big layoffs, when everyone left behind joined a regularly scheduled work call. She tried to start with the agenda, but everyone was uncharacteristically quiet. Finally, she stopped and asked, “Do you just want to talk?” The group visibly exhaled. People opened up, sharing their thoughts after losing so many in their group. They couldn't step over this one so quickly.
To further compound the confusion, many layoffs now occur via email - no conversation, just a written message ending employment. People leave work one day, navigate their departure remotely and receive a box to return their laptop and phone. No chance to say goodbye or find closure with colleagues.
What Leaders Can Do
Transitions are difficult but often inevitable, especially in turbulent times. So, what can leaders do in the face of layoffs - especially when more may be coming?
Really listen and stay connected. Stephen Covey wrote, “Seek first to understand and then to be understood.” Leaders focus their attention on the people around them, especially during challenging times. Listening fully, without judgment or distraction, builds trust when it’s needed most.
Cultivate empathy. “When empathy is present, defensiveness decreases and something positive replaces it,” writes Sherrie Campbell. Take time to ask, “What’s your biggest worry right now?” or “How can I help?” These questions invite openness and create space for healing and clarity.
Tell the truth with care. Be a safe space for honest conversations. Say what you know and admit what you don’t. Even when news is hard, transparency builds credibility and steadies your team.
Help people grow through uncertainty. Leaders use their position to help others discover their strengths and navigate change. When you focus on developing people, not just managing outcomes, you create resilience, one conversation at a time.
Taking Good Care of Yourself
If you’ve been laid off, take good care of yourself. That means tending to the basics: eating well, moving your body and getting enough sleep. These small acts build the foundation for recovery.
Watch your thoughts. The inner critic can be relentless: “You’ll never find another job.” “You’re not good enough.” When those thoughts arise, practice letting them go - like training a puppy to drop a sock they weren’t supposed to have. Replace them with new perspectives: “Things do work out for me,” or “I am ok right now.”
Finding optimism after a layoff takes time. Pessimism can feel like protection. Lower your expectations, and you won’t be disappointed. But life as a pessimist isn’t a great long-term strategy. Shifting away from negativity opens space for possibility and new beginnings.
The Silver Lining: Opportunity in Uncertainty
Navigating layoffs is never easy, but like any challenge, it can build resilience and deepen empathy and leadership skills. Whether you’re guiding others or rebuilding your own footing, this is a good time to listen deeply, act compassionately and try to make things better, for yourself and for those who count on you. Because sometimes effective leadership isn’t measured by control or decisiveness, but by how we actually show up when things fall apart.
Tips: Finding Your Way Forward
Whether you’ve been laid off or left behind, here are a few ways to start getting back on your feet:
Take a moment before reacting. Take the time to process what has happened. Shock and anger are normal, but you’ll think more clearly once emotions settle.
Reach out. Don’t isolate. Connect with trusted friends, colleagues or mentors who can listen, advise or help you see options you might miss alone.
Take inventory. Make a list of your strengths, experiences and what genuinely energizes you. It can help you reframe your next steps.
Focus on well-being. Prioritize rest, movement and nutrition. Recovery from any setback always starts with physical stability.
Adopt a small goal. One next step - rewriting your résumé, setting up a coffee chat or learning a new skill - can create momentum and restore confidence.
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