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Empathetic Leadership in Layoffs

By Alexia Georghiou

Layoffs are among the most difficult decisions a leader can make. Yet they are not only moments of separation—they are defining moments of leadership. How they are handled reverberates through every level of the organization. For those affected, they mark a turning point. For those remaining, they signal what kind of culture they’re still part of. Empathy, in this context, is not a sentiment. It is a leadership discipline.

The Cost of Emotional Blind Spots

When people receive news of a layoff, they often experience a full-body response—not just emotional, but neurological. Neuroscience shows that the brain reacts to perceived threats like job loss with the same stress patterns triggered by physical danger. Shock. Disassociation. Rage. Grief. Leaders who misread these signals as resistance or ingratitude often escalate harm unintentionally.

This isn’t about being soft. It’s about being precise. Empathy allows leaders to meet people where they are and guide them forward effectively.

Moreover, layoffs mishandled erode more than individual well-being—they damage team cohesion, trust in leadership, and organizational performance. Studies show workplace incivility and voluntary turnover spike in the months following poorly managed layoffs. The financial cost is measurable. The cultural toll, even more so.

In Daniel Goleman’s article “The Focused Leader” (Harvard Business Review, December 2013), empathy is described as a foundational skill for leadership and emotional intelligence. Goleman identifies three distinct types of empathy that contribute to strong interpersonal relationships and effective leadership:

Cognitive Empathy – The ability to understand another person’s perspective or mental state. This type of empathy enables leaders to communicate effectively by thinking about others’ thoughts and feelings without necessarily feeling them.

“Head to Head”

What it is:
Understanding how others think and what they might be feeling.

Use it when:

• You’re in a negotiation or giving feedback
• You need to anticipate someone’s reaction
• You’re trying to connect with people from different backgrounds or cultures

How to apply:

• Ask yourself: “What might they be thinking right now?”
• Listen actively and paraphrase their views
• Stay curious instead of making assumptions

Emotional Empathy – The ability to physically feel what someone else is feeling. This kind of empathy helps leaders connect deeply with others and is crucial for reading group dynamics and mentoring.

“Heart to Heart”

What it is:
Feeling what others feel—experiencing their emotions as if they were your own.

Use it when:

• Someone is sharing a personal struggle or joy
• You’re mentoring or supporting someone
• You want to build deep trust

How to apply:

• Tune in to tone, body language, and facial expressions
• Reflect the emotion without judgment: “That sounds really tough…”
• Be present—don’t jump to problem-solving right away

Empathic Concern (Compassionate Empathy) – The ability to sense what another person needs from you and be moved to help. It’s rooted in brain circuitry associated with care and concern, such as a parent has for a child, and is key for supportive leadership.

“Heart to Hand”

What it is:
Not just feeling or understanding—but being moved to help.

Use it when:

• A friend or colleague is in distress
• You’re in a caregiving or leadership role
• You want to show support with action

How to apply:

• Ask: “How can I support you?”
• Offer specific help (“Can I take that off your plate?”)
• Balance care with boundaries to avoid burnout

Goleman emphasizes that effective leaders must be able to focus on others—reaching toward people with attention and care—which forms the essence of empathy. These types of empathy help leaders build trust, navigate social situations skillfully, and respond to others’ needs with appropriate emotional and practical support.

Five Practices That Define Empathetic Layoff Leadership

• 1. Clarity Over Comfort
  Avoid euphemisms. Employees can absorb hard truths when delivered with respect. Explain the rationale behind the decision, the selection process, and the support being offered. Ambiguity fuels anxiety. Transparency anchors stability.
• 2. Human, Not Transactional
  Layoff conversations should never feel procedural. Whenever possible, communicate in person or via live video. Refer to individuals by name. Show presence. Your tone and body language matter as much as your words.
• 3. Provide Real Support
  Severance, resume assistance, outplacement services, and mental health resources aren’t perks—they’re part of ethical transition planning. What’s offered (and how) will influence how former employees speak about your organization long after they leave—and how remaining employees assess their own value.
• 4. Regulate Yourself First
  Your team’s emotional temperature will reflect yours. Prepare intentionally before delivering hard news. Leaders who remain calm, grounded, and clear help others stabilize in return. Emotional regulation isn’t an HR skill—it’s a leadership imperative.
• 5. Stay Visible Post-Layoff
  Remaining employees need reassurance. Avoid the instinct to retreat. Instead, increase presence. Host team huddles. Provide regular updates. Share next steps. Uncertainty breeds rumors. Visibility restores confidence.

Layoffs Are Culture Moments

A layoff is not just a financial decision—it’s a litmus test. It shows how power is wielded, how people are treated, and whether values hold under pressure. Teams don’t remember every policy. They remember how they felt when it mattered.

Handled poorly, layoffs deepen disengagement. Handled well, they build credibility.

The way you exit people is the culture you teach the rest to expect.

Leaders who approach layoffs with empathy are not being sentimental. They’re being strategic. They’re preserving trust, reinforcing stability, and guiding their people—both outgoing and remaining—through uncertainty with clarity and care.

That’s what endures. That’s leadership.

Alexia Georghiou, founder of the Knoxville Happiness Coalition, and author of—The Future of Work is Human and the Future of Success is Happiness—specializes in organizational culture, change leadership, and workplace well-being. With over 5 years of experience advising executives and HR leaders, Alexia writes and speaks on human-centered leadership practices that align performance with purpose.