How can you rebuild your relationships with your direct reports after a reduction in force on the software team? After the announcement, what’s the immediate next step a leader should take?
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This is a tough one. Having been through it myself, it's a process.
First off, let them grieve and vent to you. While they will feel hurt, they will also feel guilty that they didn't get cut. However, once this happens there is always an undercurrent that the company doesn't care about its employees and that they could be next at any moment. The team will be looking for anyone they can trust, and it's not the company. The company just proved that people are expendable and it's profit over people.
As a manager you can never guarantee to people that they won't be laid off. Let them come to you and talk. Listen more than you speak. What you can do is guarantee that you will support them, help them find new jobs, provide a good reference, and give them as much warning as you can if it's going to happen again.
After a layoff announcement, rebuild trust with your software team by being honest and open. Hold a team meeting ASAP to listen to their concerns, explain what happened, and share next steps. Check in one-on-one to show you care. Small actions, like being available and clear, help mend relationships fast.