Tapped to Downsize Workforce. Now What?
Layoffs Are Complex, They Are Not Cut and Dry
When faced with a Reduction in Force (RIF), it’s easy to focus only on cost-cutting. However, workforce reductions are driven by hundreds of factors, from market shifts to business model changes, as seen in the image provided.
By Respiris Inc.
While layoffs are often necessary, they must be done with strategy, fairness, and empathy to minimize business disruption, legal risks, and damage to company culture.
💡 Key Question: What does the data tell you?
Before making decisions, HR leaders must take a data-driven approach, ensuring fairness, compliance, and strategic alignment.
This guide provides a structured 10-step framework for executing layoffs legally, ethically, and strategically, while also protecting employee morale and business continuity.
10 Steps to a Well-Executed Workforce Reduction
Step 1: Understand the Business Reason
✅ Is this a financial decision, restructuring, or response to market conditions?
✅ What problem is the reduction solving?
✅ How does this fit into the company’s long-term vision?
💡 Why This Matters: Leadership needs clarity on the real reasons before making cuts. If layoffs are a short-term fix with no long-term strategy, the company may face the same issue again.
Step 2: Align Leadership & Define RIF Criteria
Before identifying employees, determine objective criteria for selection:
✅ Performance Management: Who consistently meets/exceeds expectations?
✅ People Analytics: Tenure, state, city, zip code, compensation, benefits.
✅ Critical Roles: Which jobs are essential for revenue and operations?
✅ Business Impact: What happens if this role is removed?
✅ AI & Automation Adaptability: Can the employee integrate AI-driven efficiencies?
✅ Cross-Group Collaboration: Does the employee enhance teamwork and synergy?
✅ Values & Competencies Alignment: Who exemplifies company culture and future skills?
💡 Why This Matters: A structured selection process prevents bias, potential lawsuits, and unnecessary business disruptions.
Step 3: Assess Teams & Roles—Not Just Headcount
Layoffs aren’t about how many people but which roles and skills are essential.
✅ Can we restructure without layoffs (role consolidation, retraining)?
✅ Are there overlapping or redundant positions?
✅ How do changes impact workload on remaining teams?
✅ Are there alternative cost-saving measures that can prevent job loss?
💡 Why This Matters: Cutting without strategy can weaken operations and employee morale.
Step 4: Check Legal & Compliance Risks
✅ Federal & State WARN Act: Are advance notices required?
✅ Employment Contracts: Are there severance, stock, or bonus obligations?
✅ Diversity & Equity Risks: Will cuts disproportionately impact certain groups?
✅ International Labor Laws: Are there country-specific protections?
💡 Why This Matters: Failure to comply can lead to lawsuits, fines, and reputational damage.
Step 5: Identify Employees & Finalize the List
✅ Cross-check decisions with leadership & legal.
✅ Ensure diversity & inclusion balance.
✅ Validate against business continuity needs.
✅ Review impact of layoffs on company culture and employer brand.
💡 Why This Matters: Every decision must be data-backed, fair, and aligned with long-term goals.
Step 6: Build a Clear Communication Plan
Before announcing layoffs, plan messaging carefully.
✅ Who will communicate? (CEO, HR, direct managers?)
✅ What will be said? (Simple, clear, and human-centered.)
✅ When and how? (Avoid Fridays—employees need support, not weekend uncertainty.)
✅ What support will be offered? (Severance, career coaching, resume help, job referrals.)
💡 Why This Matters: Mishandled communication increases fear, uncertainty, and potential PR crises.
Step 7: Train Managers for Difficult Conversations
Managers are the frontline of layoffs—they need guidance.
✅ Give them a structured script.
✅ Prepare them for emotional reactions.
✅ Ensure they provide next steps & support resources.
✅ Teach active listening and empathy skills.
💡 Why This Matters: A poorly delivered layoff message can harm morale and retention of remaining employees.
Step 8: Execute Layoffs - Transparency & Empathy
✅ Private, 1:1 conversations only (no mass layoffs over email).
✅ Give clear information (severance, benefits, outplacement).
✅ Provide mental health & career transition resources.
✅ Offer internal referrals for open roles in other departments.
💡 Why This Matters: Employees should feel respected, supported, and valued—even in difficult moments.
Step 9: Support Retained Employees ("Survivors")
After layoffs, the workplace culture shifts.
✅ Address "Survivor’s Guilt"—acknowledge the emotional impact.
✅ Be transparent about the company’s future.
✅ Offer career development & engagement opportunities.
✅ Reinforce company values and business vision.
💡 Why This Matters: Remaining employees need reassurance and leadership to stay engaged.
Step 10: Conduct a Post-Layoff Review
✅ Did we follow our criteria fairly?
✅ Are there unintended gaps in skill or operations?
✅ What lessons can we apply for the future?
✅ How will leadership rebuild trust?
💡 Why This Matters: Layoffs are not just an event—they impact company culture for years.
Reflection: What Would You Do Differently Next Time?
Now that the workforce reduction has been executed, ask yourself:
Were layoffs the only option, or could re-skilling have saved jobs?
How did leadership handle communication, and how can it be improved?
Did we offer enough support to employees and managers?
How can we rebuild trust with remaining employees?
💭 Takeaway: Workforce reductions should be an opportunity for learning, improvement, and long-term workforce planning.
Who is Angel Cruzado? Why Re-Inspire Outplacement?
Angel Cruzado is a trusted leader in workforce strategy and outplacement assistance, having worked with global brands like Microsoft, Medtronic, Fidelity Investments, and T-Mobile. With over 15 years of HR expertise, he started offering outplacement services for free, helping individuals rewrite their resumes, optimize their LinkedIn profiles, and reclaim their careers.
What began as a personal mission soon turned into a movement—one company became two, then three, and now Angel partners with multiple businesses and job search coaches to provide scalable, people-first career transition support. A graduate of Bentley University and the University of Wisconsin-Madison, Angel combines deep empathy, AI-powered workforce analytics, and a strategic approach to help companies navigate workforce reductions with clarity, fairness, and integrity.
As the Founder of Respiris, Angel is redefining outplacement by making it personal, community-driven, and transformative. Unlike outdated outplacement firms that offer one-size-fits-all solutions, Respiris reinspires career transitions—helping both companies and individuals move forward with confidence.
His approach minimizes risk for businesses, protects employer brands, and provides real, hands-on career coaching that gets results. If you're looking for a workforce transition expert who truly cares about the future of your employees and your company’s reputation, Angel Cruzado is the partner you need. Layoffs are difficult—doing them right is a competitive advantage.
📅 Grab time on Angel’s calendar: calendly.com/angelcruzado/cxo
📱 Text Angel directly: (415) 770-3380 (Yes, he’s available via text!)
📧 Email Angel at: angel.cruzado@respiris.com
Final Thoughts - Leading Layoffs with AI, Community and Deep Empathy
Layoffs should be strategic, not reactionary. HR leaders must balance business needs, compliance, and employee well-being.
✔ Be transparent.
✔ Be human.
✔ Be prepared.
🚀 Need expert guidance on workforce reductions? Let’s build a strategic, people-first approach together.
