The Colab Brief - 147: Bad News Bears - Layoff Central

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Author

Ash + Lizzy
December 07, 2024

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When Edelman announced its 5% workforce reduction this week, affecting 330 employees globally, they demonstrated an important truth about communicating difficult news: How you deliver bad news matters just as much as the news itself.

Read Time: 4 minutes

The Reality Check 📊

Let's be direct: Layoffs are happening across our industry. While tech layoffs have slowed from January's peak of 84,714 to June's 10,524 (according to TechCrunch), we're seeing a new wave hitting agencies and communications firms. Edelman's recent restructuring isn't just a story about job cuts – it's a masterclass in how to (and sometimes how not to) communicate organizational change.

The Communication Hierarchy 🎯

When it comes to layoffs, there's a clear hierarchy of communication methods, and we've seen them all in action this year. 

  • Individual in-person meetings remain the gold standard, offering dignity and space for real conversation. 

  • One-on-one video calls come in as a close second, especially in our remote-first world. 

  • Small group announcements can work when handled with extreme care, but company-wide meetings often feel impersonal and can backfire spectacularly. 

  • Email announcements? They should be your absolute last resort – and even then, only as a follow-up to personal communication.

The Three Phases of Layoff Communications ⚖️
Phase 1: Before the Announcement ⏰

Smart organizations, like Edelman, know that preparation is everything. Your communications plan needs to be airtight before a single conversation happens. This means developing clear, empathetic messaging for affected employees that acknowledges their contributions while being honest about the situation. It means crafting different, but equally thoughtful, communications for remaining staff who will have their own fears and concerns. And it means having media statements ready that tell your story before someone else does.

Phase 2: During the Announcement 🗣️

The actual announcement phase is where many companies stumble. Speed and dignity should be your North Stars here. Dragging out layoffs over days or weeks is psychological torture for your entire organization. Execute quickly, but with humanity. Ensure every affected employee hears the news from a human being, not an inbox. Have support resources ready – everything from HR paperwork to mental health resources. And make sure every manager is singing from the same song sheet to prevent mixed messages.

Phase 3: The Aftermath 💣

This is the phase most companies underestimate. The day after layoffs, you're essentially leading a new organization. Your remaining employees are watching every move you make. They need clear communication about the company's stability and direction. They need to understand their role in the go-forward plan. And they need to see that you're supporting departed colleagues with more than just severance.

What Others Can Learn 💡

Studying Edelman's approach reveals several crucial lessons for any organization facing similar challenges. First, they tied the changes to a clear business strategy – this wasn't just cost-cutting, but a restructuring to meet changing market demands. They were specific about which parts of the business were affected, reducing anxiety in unaffected areas. They maintained transparency about the financial context, citing an 8% revenue decline in the U.S. Interestingly, they balanced the layoff news with forward-looking investments, including new creative hires in Colombia and AI initiatives. 

Side note: The jury is still out about whether or not mentioning overseas hiring and an emphasis on AI was a smart move in light of the reduction. I’m going with no. 

The Bottom Line 🎯

Bad news doesn't have to become bad press. Whether you're handling layoffs at Edelman's scale or managing smaller organizational changes, success comes down to thoughtful planning, empathetic execution, and careful attention to the aftermath. 

Your internal communications will become external communications – that's just the reality of our connected world. Plan accordingly.

Remember: The way you handle layoffs doesn't just impact those leaving; it sends a powerful message to those staying and to future employees. Make it count.

Affected by the Edelman layoffs (or know someone great who was)? The Colab is hiring a B2B Tech PR Director. 

Until next time - 

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