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Empathetic Leadership in Layoffs

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:

How to apply:

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:

How to apply:

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:

How to apply:

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

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

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.