What makes this different from a termination
A layoff is not about the person's performance, and the single most important thing you do in this conversation is make that unmistakable. People who are laid off spend months privately wondering whether it really was about them. Saying it plainly, more than once, is the kindest and most useful thing available to you.
The second difference is that you probably did not make this decision. You are delivering someone else's call, possibly one you disagree with, and you have to do it without either pretending you decided it or distancing yourself from it. Both failure modes are common. "The company decided" makes you sound like you are hiding, and defending a decision you think is wrong makes you sound false to someone who knows you well.
The line that works is ownership of the delivery without false ownership of the decision: "This was a company decision about roles and budget. I'm the one telling you, and I'm not going to pretend I have distance from it."
What to prepare
Layoffs carry compliance requirements that terminations for cause do not, and some of them have real teeth at small companies too.
- Check notice requirements. Federal WARN applies at 100 or more employees, but several states have their own thresholds that reach much smaller employers. Verify before you schedule anything.
- Have severance terms finalized. Amount, timing, and whether it is conditioned on a release agreement. Do not go in with "we're still working that out."
- Know the benefits answer precisely. The end date and continuation options are the first thing most people ask about, particularly anyone with a family or a medical situation.
- Decide the sequence and compress it. Individual conversations first, then the remaining team, ideally within the same two hours. A layoff that leaks halfway through is significantly worse for everyone.
- Prepare what you can offer beyond money. A reference, an introduction, a LinkedIn recommendation. At a small company these are often worth more than an extra week of severance and they cost you nothing.
How to open the individual conversation
Same rule as any hard news: decision first, in plain words, then stop.
Language that works:
- "I have hard news. We're eliminating a number of roles, and yours is one of them. Your last day is the 30th. This is not about your performance, and I want to be very clear about that."
- "We've had to cut about fifteen percent of the team, and your position is being eliminated. That decision is about the business, not about your work. Let me walk you through the details."
Then give the actual business reason in one or two sentences. Vagueness reads as evasion. "We lost the Aldridge contract, which was a third of the revenue in this group" is a real reason someone can accept. "Due to changing market conditions we're realigning" is corporate noise, and people can hear the difference.
Say the performance sentence twice, once at the top and once at the end. They will not absorb it the first time.
The questions you should expect, and what to say
"Why me and not someone else?" The hardest question in the conversation. Answer at the level of the criteria rather than the comparison: "The cuts were made by function. We eliminated the whole junior tier in this group." Never compare them to a specific colleague, both because it is cruel and because it creates real legal exposure.
"Did you fight for me?" Answer honestly. If you did, say what you argued. If you did not, do not claim you did, because it tends to come out and the betrayal is worse than the layoff. "I made the case for keeping two roles and got one" is a hard true answer that people can respect.
"Are there more coming?" Do not promise what you do not control. "I don't know, and I'm not going to tell you it's finished when I can't be sure." Anyone you falsely reassure will remember it if a second round happens.
Anger about the company, or about you. Let it happen without defending the business. "That's fair. You're allowed to be angry about this." Defensiveness here converts a person who might have stayed a supporter into someone who tells the story very differently.
"What do I tell people?" Often a real practical worry about their job search. Offer something concrete: agreed language, a reference, a note to your network. This is the moment where the offer means the most.
The conversation with the people who are staying
The second conversation gets skipped or rushed, and it determines what happens to your team over the next quarter. The people who remain are doing three things at once: grieving colleagues, worrying about themselves, and quietly recalculating whether to start looking.
Say four things, in this order:
- What happened, plainly. How many roles, which functions, and the business reason. Do not discuss individual circumstances.
- Whether it is over. Say what you actually know. If you cannot promise there will be no more, say that rather than offering comfort you may have to retract.
- What happens to the work. The unspoken fear is absorbing the workload of three people indefinitely. Address it directly, even if the answer is that you are still figuring it out.
- That it is a bad day. Do not pivot to a rallying speech. A manager who moves straight to "now let's refocus on the quarter" reads as someone who did not care, and that impression is hard to undo.
Then hold one-on-ones over the following week. The group setting is where people stay quiet, and the individual conversation is where you find out who is already interviewing.
Practice scenario: the loyal long-timer
Situation. A company of 45 people lost its largest client and is cutting seven roles. One of them is a six-year employee who is well liked, performs adequately, and whose function is being eliminated entirely. You argued to keep them and lost. Severance is four weeks.
How the other person plays it. Shocked, then quiet. Asks why them. Asks directly whether you fought for it. Asks whether more cuts are coming. Does not get angry at you, gets visibly hurt, which is harder. Near the end, asks what they should tell their spouse tonight.
What a good run looks like. The news and the "this is not about your performance" line both land in the first three sentences. A real business reason, named specifically. An honest answer to whether you fought for them, including that you lost. No false reassurance about future cuts. A concrete offer of help attached before the meeting ends.
What a bad run looks like. Leading with the business context and burying the news. "The company decided" as a way to create distance. Comparing them to a colleague who stayed. Promising there will be no more cuts. Moving to logistics while the person is still absorbing.