There’s no good way to lay off employees, but attention to a few considerations can reduce some of the pain.

• Handle the announcements directly and respectfully. A layoff notice will never be received as good news, but employees find it more distressing to learn their fate through a pink slip, an e-mail, or – worst of all – the rumor mill than if they find out during a face-to-face meeting with management.
  
  
• Explain why downsizing is necessary and why the company made choices about who would be laid off and who would be retained.
  
  
• Be sure management presents a unified message to employees. If one executive says the company must cut back because it lost a major customer, another says the layoffs are due to gloomy economic forecasts, and another says that increased production costs are forcing a belt tightening, employees are not likely to believe anyone.
  
  
• Be ready to answer questions about severance benefits and what access those laid off will have  to health insurance, voice mail, the company computer network, and other company resources during the job search period. Downsized employees will also want to know about eligibility for unemployment compensation and outplacement services that may be available.

Treat remaining employees like recruits, answering their questions truthfully about the company’s current situation and its future prospects. Let survivors know that they are essential to the future of the company and that you recognize the important contribution they make.