Strategies for Leaders in Dealing with Downsizing, Reorganization or Major Changes in the Workplace


1) Communicate about the Downsizing

Frequent, truthful and direct communication
-Clarify the reasons for the downsizing
-Describe how downsizing will take place
-Provide information on support and resources

2) Offer Support During Downsizing

Encourage employees to express emotion and reactions about downsizing in specific circumstances. It is not acceptable to spend work-time venting, but there can be appropriate times and places designated for sharing concerns.

Acknowledge Loss, Fear, and Resistance

Maintain focus on coping: allow people to express their concerns, and offer empathy for their understandable worries, but solicit input on “how can we cope with the reality of the situation we’ve got?”

Be a model of leader who understands people’s feelings and responds kindly, but who also maintains a focus on creative adaptation and getting business done.

Offer support not only to employees being laid off, but to “survivors” of downsizing as well. Survivors are left with as many negative emotions and beliefs as those laid off.

Provide tools to employees both as individuals and as groups
NOTE: (Your employer may offer both individual counseling and group training)

3) Involve Employees as Much as Possible

-Ask for and listen to employees’ opinions
-Request feedback on how the downsizing is proceeding
-Gather input from the employees who are being affected

4) Affect Attitudes and Behaviors

-Rebuilding concept: In order to motivate “surviving” employees, keep in mind that a period of “rebuilding” will need to occur before past motivators will work again.

Be cognizant, as a leader, of your attitude and behavior on employee morale.