How to Lead Change after Workforce Reduction?

Significant changes, such as workforce reduction negotiations, leave a profound impact on the emotional climate of an organization and the well-being of its individuals. Once the difficult decisions have been made and the focus shifts toward the future, many managers find that the greatest challenges lie ahead. How to lead people who feel exhausted, confused, or even grieving?

Workforce reduction negotiations are not just about numbers and strategic decisions – they deeply affect people on a personal level. The remaining employees often carry increased responsibilities: taking on the tasks of their laid-off colleagues and worrying about the organization’s future. At the same time, the performance pressures that necessitated the cuts remain unchanged or even intensify. In this context, ensuring the organization’s vitality requires skill, empathy, and courage from managers.

But how can change be led when people are weary and uncertainty still casts a shadow over them? How can shared energy be redirected towards the future, ensuring that efficiency measures deliver the desired results? Keep reading for more insights!

Understanding and addressing the emotional climate

After workforce reduction, the emotional climate of an organization is often confused. Remaining employees may feel guilt for being spared from layoffs or frustration about not being heard. Some might experience fear that the situation isn’t still over or frustration about their increased workload. These feelings cannot be ignored but should be addressed and managed instead.

A supervisor’s most important tool at this stage is empathetic presence. It is crucial to meet employees’ emotions with a caring attitude. This involves more than passive listening – leaders must deepen the conversation. Questions such as, “How does the situation feel to you?” or “What kind of support do you need right now?” can create space for open dialogue.

Creating a psychologically safe atmosphere

Psychological safety is particularly important after crises. When people feel that their voices are heard, they are more likely to engage in discussions and express concerns without fear of judgment. This is essential for the organization’s recovery and the revival of collaboration.

The manager’s role is to model openness, accept feedback, and acknowledge possible mistakes. Building trust may seem slow, but without it, transitioning to a new normal becomes challenging. Read more about creating a psychologically safe environment here!

Supporting the remaining workforce

After a change, employees’ attention and energy may focus too much on the past. While this is natural, managers must help them shift their gaze toward the future. Three key areas deserve focus:

1. Ensuring resources and managing workload
After staff layoffs, remaining employees often face heavier workloads. Without a realistic assessment of resource needs, burnout can set in quickly. Reorganizing and prioritizing work is essential. Now is the time to prioritize boldly and cut back on less critical tasks or postpone them to a later time. Additionally, ensure employees have the necessary tools and support, which might include training for new responsibilities or external coaching to rebuild the work community.

2. Recognition and appreciation
During times of crisis, even small successes carry great significance. Acknowledging and celebrating these achievements is vital for rebuilding employee motivation and confidence. Recognition should not focus solely on outcomes but also on the effort: “Thank you for staying committed during this challenging time.”

3. Mental and physical well-being
Post-layoff emotional strain is often high. Managers must ensure that support is accessible, whether through occupational health services, coaching, or facilitated group discussions. Encouraging taking care of one’s well-being practices is also crucial.

Learn how to manage change effectively!

Clear communication brings hope

In times of change, communication is one of the most effective tools for reducing uncertainty. When employees lack information, they fill in the gaps with their own, often pessimistic, assumptions.

Supervisors and leaders should communicate openly and regularly about the organization’s situation and goals, even if everything hasn’t been decided yet. Honesty and clarity are key.

Leading change is about taking care of people – and yourself

When an organization goes through tough times, a manager’s role is not just to keep the business on track but to ensure that people are doing well. The real benefits of workforce reduction and efficiency measures become evident only when the remaining employees feel supported and valued.

It’s essential to remember that managers also need support – both in leading change and in processing their own emotions. Change can evoke strong feelings and stress among leaders, who often balance their own well-being with supporting their teams. To be truly present for others, managers must first address their own emotions. Here, top management plays a critical role in ensuring that managers have adequate support and resources, laying a stronger foundation for successful change.

Challenging times also offer an opportunity. An organization that demonstrates humanity and empathy can ultimately emerge stronger, more cohesive, and more committed. In this way, a crisis becomes a place of growth – for individuals and the entire organization.

Xpedio supports individuals, teams, and organizations during challenging transitions. If you’d like to discuss how we can help your organization recover and thrive, don’t hesitate to get in touch!