How do you navigate delivering hard news (e.g., layoffs, budget cuts, salary reductions) to your team?

Always lead with the business drivers for any decision. Transparency is critical, and being upfront about the reasons behind these changes is essential. Providing the bigger picture and explaining the why, even if it's difficult to hear, helps frame the news more digestibly. Being empathetic to the individuals impacted and maintaining transparency builds trust and credibility. It is crucial to be honest and truthful, avoiding over-justification or hiding behind other reasons, as employees now have platforms to share the real story themselves.

I previously worked at a marketing agency and as the economy shifted, companies were bringing more in-house and we had to layoff the majority of the team (as well as my position at the very end).

How I handled it was to be as transparent as possible with the team about the challenges facing the business and what was in our control and what wasn’t in our control. I also found ways to brainstorm with the team about things we could do to bring in new business, including creating new product offerings or providing services to customers instead of or in addition to products. 

By being transparent about shifts in the market and the industry, it wasn’t a complete shock when layoffs happened. Everyone also knew that it was going by seniority, so we knew the relative risk for each person and that allowed some people to leave of their own accord which then afforded others more time to remain in their roles.

Any time you can utilize hard times to educate and empower the team will not only help you but it is an invaluable training moment for them as they will certainly encounter other hardships during their careers.