HR and Layoffs: Lessons for Leaders and Tools for Workers

Layoffs are still making headlines in 2025. Rising costs, rapid advances in AI, and post-pandemic “right-sizing” have reshaped many industries.

The World Economic Forum estimates that 92 million jobs will be displaced worldwide over the next five years due to automation and AI. Salesforce and Amazon have already pointed to automation as a reason for staff cuts in customer service and cloud roles.

But this trend is much broader. UPS announced 20,000 job cuts in April. Boeing reduced 400 positions tied to its space program. Starbucks laid off more than 1,000 corporate staff. Finance firms like Morgan Stanley and Block cut jobs this year as well.

Downturn in the Canadian Market

In Canada, the retail sector has been shaken. Hudson’s Bay Company announced in May that 8,300 jobs would be cut. Canadian Tire also reduced staff as it reorganized operations. These are household names that many workers thought were stable. Their layoffs show that no sector is immune.

For workers, this means uncertainty. For companies, it means their layoff process is not just a financial exercise. It defines their culture and leaves a lasting impression on both those leaving and those staying.

There is no easy or perfect way to go through the layoff process. But there are steps that can ease the impact for both employees and the wider community. We spoke to several industry experts about what really makes a difference.

Respect Matters

Respect is the first step in any layoff.

Ryan McEachron, CEO of ISU Insurance Services, shared how he approached a restructuring.

“I met with each affected employee in person instead of sending HR notices,” he said. “I also explained their benefits, since many didn’t know they could claim partial unemployment during hour reductions.”

That personal touch does not take away the hardship. But it shows people that they matter, and it helps them leave with dignity intact.

Transparency Builds Trust

Workers say not knowing is worse than hearing bad news. Clear information helps them prepare.

Sean Zavary, CEO of Greenlight Offer, explained how openness kept his team steady during hard times.

“When we hit rough patches, I shared our full financial position with the staff, including 90-day cash flow,” he said. “Instead of layoffs, we all agreed to temporary pay cuts. I took the largest cut myself.”

Even when layoffs cannot be avoided, transparency builds trust. People can plan their next steps when they know the truth.

The Legal Foundation

Layoffs are emotional, but they are also legal events that can affect workers for months.

Michael Weiss, an employment lawyer at Lerner & Weiss, has handled workforce reductions for decades.

“The biggest mistake is treating layoffs as only HR decisions and ignoring compliance,” he said. “In one case we cut a $129,000 wrongful termination claim down to $10,000 because everything was documented and pay laws were followed.”

For workers, that matters. Documentation ensures pay and benefits are handled properly. It protects rights during a vulnerable time.

Empathy in Action

Empathy is not optional. It needs to be real.

Fallon Chase, founder of Chase & Co. HR, has managed more than 150 layoffs in one year.

“Your role is to help the person through the layoff, not just deliver bad news,” she said. “Be human, be clear, and think about how you would want to be treated.”

She added that extending health coverage, even briefly, can ease stress. For many families, that support makes a hard time a little more manageable.

The Graceful Goodbye

Tina Robinson, founder of WorkJoy, an executive coach and former corporate HR leader, has presented widely on what she calls “the graceful goodbye.”

Her message is clear: departures should be handled with care. A graceful goodbye is not just about ending a role. It is about honoring the transition. For employees, that means leaving with dignity and confidence. For managers, it means keeping communication open, offering support, and making sure the process preserves relationships and reputations.

A thoughtful goodbye cannot erase the impact of job loss, but it can make the transition less painful. For workers, that respect and clarity helps them move forward without feeling discarded.

Supporting Employees

Selen Turner, PhD, Partner at Advantage Performance Group, says layoffs should be handled personally and with care. Whenever possible, she recommends speaking with impacted employees by phone or in person. Being clear about why the decision is happening, what comes next, and checking in regularly helps maintain trust.

She notes that support like career coaching, resume help, and mental health resources makes the biggest difference. For those who remain, managers should get tools to lead with empathy, balance workloads, and give teams space to process.

Turner adds that morale recovers when leaders acknowledge guilt and anxiety, create listening sessions or culture huddles, and give people a chance to reconnect. Trust comes back through clarity, empathy, and consistency, not through pressure to produce more.

Moving Forward

The experts agree on a few guiding principles:

• Treat people with respect
• Be transparent about the situation
• Follow the law carefully
• Show empathy in real ways

For workers, these principles shape the layoff experience. They can mean the difference between feeling discarded and feeling supported.

At Yotru, we have built our tools with these lessons in mind. Our platform helps people create resumes and cover letters quickly, so they can take control of their job search. Layoffs may be unavoidable, but moving forward with clarity and confidence is always possible.

If you are a worker who has been laid off, start building your resume with Yotru and focus on moving forward.

If your company or union is navigating layoffs, our pilot program can make Yotru part of the support package.