What Not to Do When Laying Off Employees

Layoffs are sometimes unavoidable. As markets shift, even the most successful companies face moments where workforce reductions are necessary. In January 2026, 108,435 job cuts were reported, representing a 118% jump from the same period last year, and the most in any January since the Great Recession in 2009.

While layoffs may be unavoidable, how they are handled is critically important and sends a lasting message to employees, customers, and even the public. If your company is considering layoffs this year, you might want to take note of Amazon’s layoff of 16,000 employees in January—as a guide of what not to do.

Prior to laying off employees at the start of the year, Amazon apparently sent a premature email including a calendar invitation, alerting employees in Amazon Web Services of impending layoffs, referred to as “Project Dawn.” Confusion spread across Slack channels amongst thousands of employees, questioning whether the message was intended for everyone, or those whose roles were being eliminated. While the calendar invitation was quickly retracted, the damage was done.

So, what are some of the top layoff mistakes? Here is what our HR Advisors don’t recommend:

Not Considering All Options: Leaders should first weigh all options. Is the layoff imperative, or could a reduction in hours or pay, reduction in force, or furlough meet your needs? For example, employees may be more receptive to taking a pay reduction if the company explains it is an alternative to laying off coworkers. Another option is to find out whether anyone wishes to quit voluntarily or retire early, and offer monetary incentives for doing so. CEA members may access our Layoffs, Furloughs, and More Fact Sheet for additional considerations.

Letting Employees Find Out Indirectly: One of the most common and painful mistakes is allowing employees to learn about layoffs through internal rumors, deactivated system access, or calendar invites with no context. At Amazon, some employees reportedly discovered they had been laid off when their system access suddenly stopped working before they ever met with a human being. While this may seem operationally efficient, it can feel dehumanizing. Make sure your management team understands the importance of acting in unison, with a clear announcement plan, and avoid letting word get out before the final decision.

Removing Leaders from the Process: Another mistake leaders make is hiding behind HR or completely removing themselves from the layoff process. This sends the message that leadership made the decision, but isn’t willing to stand behind it. Employees expect to hear from their leaders and understand the “why” behind the decision. This often helps employees move on and have closure. Recently, laid-off employees are increasingly turning to social media to “out” companies that they feel didn’t treat them with dignity and respect during the layoff process.

Providing Lip-service Instead of Meaningful Support: Laying off employees can be emotional for those tasked with delivering the bad news. It may be tempting to say things like, “You’ll get back on your feet soon,” or “You were such a great employee.” While these statements may make you feel better, they often make the person receiving the message feel even worse. Instead, consider ways your company may be able to provide meaningful support such as:

• Severance pay;
• Continued healthcare coverage for a period of time;
• Individual references;
• Outplacement services and resume assistance.

Rushing and Making Compliance Blunders: Of course, it is also important to carefully consider compliance obligations, such as whether WARN/Cal-WARN applies, requiring advance notice, whether any employees have contractual rights, ensuring layoff decisions are not discriminatory or appear that way, handling all required paperwork, and navigating severance agreements, as applicable.

For a compliance checklist, CEA members may access our Preparing for Layoffs Checklist.

Questions? CEA Members can give us a call at 800.399.5331.