In 2022 and 2023, the tech industry went through a wave of layoffs unlike anything it had seen in a decade. Tens of thousands of employees across hundreds of organisations were let go, often abruptly, sometimes publicly, occasionally brutally. Some companies handled it with dignity. Most didn't. The ones that didn't are still paying for it — in their Glassdoor scores, in their offer acceptance rates, and in the conversations that happen between candidates before they decide whether to apply.
The real audience for how you handle layoffs
When an organisation goes through a reduction in force, there are three audiences watching: the people being let go, the people who are staying, and the people who will consider joining you in the future. Most organisations focus almost entirely on the first group — the mechanics of severance, the legal compliance, the process of notifications. This is necessary but insufficient.
How their colleagues are treated in this moment tells remaining employees more about the organisation's values than any culture deck ever will.
The people staying are watching closely. An organisation that handles layoffs with generosity, transparency, and dignity retains the trust of its remaining employees. One that handles it with opacity and minimal severance loses that trust — and often loses those employees in the months that follow.
What dignity in layoffs actually looks like
- Transparency: being honest about why the decision was made, without corporate euphemism. "We overhired during growth" is more credible than "we are restructuring to focus on our core strategic priorities."
- Generosity where possible: a severance package that genuinely helps people land on their feet, outplacement support, and a willingness to facilitate introductions.
- Respect for people's intelligence: not making people find out through a Slack message at 6 AM that their badge has been deactivated.
- Accountability: leadership taking responsibility, rather than framing the decision as an external inevitability.
The long-term employer brand calculus
Organisations that handle layoffs well protect their employer brand through difficult periods. They retain the employees they need to recover. They attract talent during and after the downturn. And they build a reputation for treating people as humans, not resources — which, in a world where talent has choices, is a significant competitive advantage. The ones that don't will find that the internet remembers.