Leadership tips for rebuilding company culture after mass layoffs
Leadership tips for rebuilding company culture after mass layoffs
By Tammy Perkins | Published: 2025-10-20 10:00:00 | Source: Fast Company – leadership-2
Layoffs may make headlines, but the real measure is how leaders support the remaining employees. It’s undeniable that layoffs are a challenge for good reason. However, it is what leaders do in the aftermath that determines whether a culture collapses or recovers.
I have led complex workforce reductions at Amazon, Microsoft, startups, and private equity-backed companies. While each situation was unique, the same pattern emerged every time. It wasn’t necessarily the layoffs that shattered the culture. The leadership’s response was.
Layoffs disrupt culture and affect more than just headcount. I’ve watched talented, committed employees turn quiet and walk away after layoffs. Not because they stopped caring, but because they stopped feeling safe.
The consequences of layoffs can be troubling for those who remain. Organizations expect survivors to absorb heavy workloads while dealing with shaky confidence and mixed emotions. Layoff survivors often experience relief, guilt, sadness, and anxiety about what’s next. This is a leadership moment that few people prepare for. Recovering from a post-layoff culture is not automatic, but intentional. In these moments, they need to communicate. It is a critical opportunity to rebuild trust, reinforce values, and address company culture.
The recovery of culture depends on many factors. Leadership must intensify its efforts to manage the consequences. Here’s how to deal with it:
Lead with honesty, not corporate talk
Layoffs are often a financial decision, but cultural recovery is a leadership decision. Don’t miss your moment. Layoffs don’t kill culture. Negligence does. Leaders who avoid difficult conversations, hide behind jargon, and pretend it’s business as usual are the ones who lose the trust of their employees. After all, silence creates speculation.
That’s why it’s important for leaders to address directly and over-communicate early. I have introduced a system of pulse checks, frequent public meetings, and open forums. You can’t rebuild morale through Slack updates or pizza parties. You have to do this in an authentic way.
When my company had to lay off workers several years ago, it was a stressful experience. As an HR leader, I carried a significant emotional burden in conversations with employees who were impacted as well as those who remained. Our executive team met with employees to answer tough questions and provide updates.
The first few sessions were a bit tense for me and our leaders, as we faced some tough questions. We were initially stymied by too much corporate talk, and the employees realized that very well. The room was tense. But eventually, this discomfort became a turning point when leaders stopped using jargon and started showing real weakness. After that, the dynamic changed. Acknowledging our emotional climate is important because it helps us regain performance and commitment. If we wanted to show our support for employees, we had to address these issues head on.
Many companies carefully plan layoffs, including announcements and severance packages. However, they often neglect what comes next. People don’t remember slide decks or talking points — they remember how they appeared in that moment. Empty buzzwords do more harm than good. Talk to people on a human level and create space for honest conversations about what is certain and what is unknown. Be open about changes to the business, team structure, available human resources, or ongoing uncertainties. Reaffirm what has not changed. At the same time, it must also be clear about the way forward.
Create safe spaces for emotion
After a layoff, the workplace looks different, and pretending otherwise only deepens the discomfort employees feel. Leaders who acknowledge this reality pave the way for recovery. To help teams re-engage, you need to take the time to listen to your employees. When you give people this kind of face, they are more likely to adapt more quickly and regain momentum.
“Emotional validation doesn’t dampen performance, it accelerates it. Employees who feel like they’re heard are more likely to re-engage, contribute, and collaborate. Weekly check-ins become vital for building connections. These conversations aren’t always easy, but they are essential for recovery. Over time, this openness fosters collaboration and restores trust.
Rebuilding culture from within
Rebuilding from within begins with clarity. Employees need context – why you made certain decisions, and what resources are available to move forward. People want details that help them understand what lies ahead and how their work fits into the bigger picture.
This is also the moment to re-energize the team. Reaffirm mission and values so employees can reconnect with a common purpose. Even in uncertainty, knowing the “why” behind action helps people stay motivated.
Leaders need to act. Retaining key talent, ensuring workloads are sustainable, and acknowledging the extra effort required from those who stay on all demonstrate that leadership is paying attention.
A common mistake leaders make is to assume that remaining team members will make up the shortfall. This assumption can lead to increased burnout, or worse, loss of valuable talent. A better approach is to prioritize tasks, eliminate low-value work, and have an honest conversation about the short-term trade-offs involved.
We realize that this is a cultural moment
Layoff testing culture. What destroys culture is indifference, silence, or meaningless talk. When leaders respond with honesty and care, disruption can become a catalyst for renewal.
You shape culture through everyday choices: the courage to answer tough questions, the discipline to maintain ongoing communication, and the humility to admit when trust is compromised. Employees notice whether leadership avoids or embraces difficult truths.
Moments of turmoil call for thought. Leaders can use this time to reassess values, address blind spots, and reinforce practices they may have overlooked. Being open about what needs to change prevents any negative direction and promotes inclusivity.
Culture is the foundation of every company. If fractional, performance and morale follow. But a stronger culture can emerge when leaders step into the moment with honesty and courage.
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(Tags for translation) Building a Strong Company Culture
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