Maintaining Team Unity in the Wake of a Layoff

When an Employee Leaves Due to a Layoff, the Focus—Rightfully—Is Often on the Person Affected
We ask how the news was delivered, whether they were properly supported, and how their transition will be handled.

But there’s another, quieter impact that deserves just as much attention: the effect on those who remain. Colleagues, team members, managers—all observe and react in their own way. And if this reality is misunderstood or overlooked, it can undermine cohesion, erode trust, and slow down the organization’s collective recovery.

A Colleague’s Departure Is Never Neutral

A layoff is not just a personal event—it also affects the workplace environment. For those who stay, it can be a destabilizing experience. Some refer to these employees as “survivors” of a downsizing. Though the term may sound dramatic, it reflects a deeper truth: emotions often range from guilt, to relief, to uncertainty.

Common reactions include:

• Discomfort or confusion about the departure
• Loss of trust in leadership
• Feelings of injustice or perceived favoritism
• Fear of being next
• Gradual demotivation or disengagement
  
  These are all signals which, when left unaddressed, can accumulate and affect team dynamics and overall performance.
  
  

What Teams Observe, They Internalize

When a layoff occurs, it’s not just the manager’s words that matter—it’s also the actions, the silences, the overall coherence. Employees pay close attention to how the departure is handled: Was it done with care or coldness? Was it clear or vague? Respectful or indifferent?

They may consciously or unconsciously ask themselves:

• Could this decision have been avoided?
• Would I be supported if this happened to me?
• Do the organization’s values align with how this was handled?

The way an employment termination is experienced becomes a mirror of the company culture. And it is in that moment that cohesion can either be strengthened—or begin to crack.

The Critical Role of Managers

To maintain team engagement, managers must be prepared to hold the conversation—even when the answers aren’t perfect. It’s not about explaining everything, but about acknowledging what people are feeling and creating a space of relational safety.

Here are a few simple yet powerful gestures:

• Name the emotions: “It’s normal to feel uncomfortable during this time.”
• Clarify the context: “This decision was made within a specific context; here’s what I can share.”
• Reaffirm trust: “What you do matters and is recognized.”
• Be available: Listen, welcome questions, without becoming defensive.

In uncertain times, transparency builds more trust than perfection. And cohesion is nurtured through authentic, human actions.

Thinking of the Collective—Without Losing Sight of the Individual

Each employee will process the situation differently. Some will want to understand, others will prefer to move on, and some may need personal validation. It’s essential to tailor your approach while maintaining a common direction.

Here’s what can help:

• Well-structured team meetings that acknowledge the event without dwelling on it
• One-on-one check-ins for those more directly affected or closer to the departing colleague
• Opportunities to reconnect with the team’s mission, offering a forward-looking perspective

This dual focus—individual and collective—is often what enables a team to emerge stronger from a difficult moment.

The Value of Structured Support

When a departing employee is offered career transition support, it brings a calming effect to the entire organization. It sends a clear message: We care for our people, even when they leave. It also demonstrates that the company stands by its decisions with respect and coherence.

This type of support:

• Eases team tension
• Provides structure for managers
• Strengthens HR’s credibility
• Helps preserve employee trust in the organization

In short, it is both a risk management tool and an engagement driver.

In Conclusion: Sustaining Momentum Through Change

A layoff is not just an announcement or a departure date. It’s a pivotal moment for the entire team. Ignoring it risks leaving blind spots in your change management strategy. Recognizing it, naming it, and addressing it with courage and consistency is what human leadership looks like.