How to Rebuild Trust After Layoffs

Last week, we broke down Jack Dorsey’s layoff email—the good, the bad, and the missed opportunities. But sending the email is just the first step. What happens after determines whether a company regains trust or watches engagement plummet.

If you’ve just gone through layoffs, here’s what needs to happen next:

1. Face to face conversations with impacted employees

An all-staff email is not a sufficient way to let someone go. Every single employee impacted by layoffs deserves a direct, face-to-face conversation—whether in person or virtual. This isn’t just about optics. It’s about respect.

In that conversation, leaders (or trained managers) should do three things:

• Clearly explain what’s happening and when it takes effect

• Provide materials the employee needs—severance info, benefits, offboarding logistics, and any career support being offered

• Thank them sincerely for their contributions

  
  

This moment sets the tone for how the organization is remembered—by those leaving and those staying. Don’t outsource that to an email.

2. Equip Managers to Support Their Teams

After a layoff, employees don’t turn to the leadership team—they turn to their manager. That’s why managers need to be fully prepared before team questions start rolling in.

Leaders should:

• Hold a dedicated manager-only meeting to align on clear, consistent messaging

• Provide talking points and guidance for tough conversations—like addressing survivor’s guilt or reinforcing what’s next

• Create a simple way for managers to escalate questions or flag morale concerns

We broke down this topic in more detail in this newsletter on supporting managers during change —because when managers feel equipped, employees feel supported.

3. Address the Full Team in an All-Hands Meeting

The worst thing leadership can do after layoffs? Go quiet.

Employees will fill silence with their own (usually worst-case) assumptions.

A company-wide all-hands helps reset the tone and reinforce alignment. In that meeting, leaders should:

• Reiterate the company’s direction—why the changes were made and where the organization is headed

• Acknowledge the challenges ahead with honesty (no need to pretend everything’s fine)

• Open the floor for questions—ideally anonymous. Dodging hard questions only damages trust further

Silence creates uncertainty. A clear, candid message creates stability.

4. Managers Hold Smaller Team Meetings

While the all-hands sets the tone, people are more likely to voice concerns in a smaller setting.

Encourage managers to hold team meetings where employees can openly ask questions like, "What does this mean for our team?" and "How do we redistribute work?" and "Are we shifting priorities?"

These conversations only work if managers are properly briefed and feel confident facilitating them. Equip them with key info, context, and talking points.

5. Clarify Who Employees Should Now Work With

Employees don’t just need emotional reassurance—they need operational clarity too.

If someone’s go-to colleague is no longer with the company, who do they contact instead? Who owns what now?

An updated org chart or point-of-contact doc, shared immediately, prevents confusion, delays, and frustration. It’s a simple but powerful way to help teams move forward.

6. Gather Feedback—Constantly

Trust isn’t rebuilt through a one-time message. It takes ongoing, intentional communication.

Here’s how to keep a pulse on morale and engagement:

✔ Regularly check in with managers—what’s the tone on their teams? What pain points are surfacing?

✔ Host a follow-up town hall to reinforce direction and answer questions once the dust settles

✔ Send a short, targeted engagement survey a few weeks after the layoffs—and reissue those same questions quarterly to track progress over time. I broke down why consistent feedback loops matter in this earlier newsletter.

What gets measured gets managed. And when employees see leaders acting on feedback, it sends a clear signal: we’re listening and we care.

Layoffs Aren’t the End—They’re a Turning Point

If handled well, employees who remain can re-engage and move forward.

If handled poorly, they disengage, lose trust, and eventually leave. The companies that get this right aren’t just the ones who communicate well during layoffs—but the ones who show up after.

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