How To Deliver Bad News To Employees

Deliver-Bad-News

AI Summary

Delivering bad news to employees is one of the most challenging tasks managers face, especially during times of economic uncertainty. The blog post emphasizes the importance of preparation, suggesting that managers anticipate potential questions and have clear, honest answers ready. Choosing the right time and setting for the conversation is crucial to ensure the message is received with the intended sensitivity.

The article advises against sugar-coating the message. Instead, managers should be direct and transparent, providing a clear explanation of the reasons behind the decision. It's essential to allow employees space to process the information, express their emotions, and ask questions. Demonstrating empathy and understanding during this process can help maintain trust and respect.

Furthermore, the blog highlights the importance of supporting the remaining team members after delivering bad news. Open communication channels, such as discussion forums or surveys, can help gauge employee sentiment and address concerns promptly. By handling difficult conversations with care and transparency, managers can navigate challenging situations while preserving team cohesion and morale.

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May 16, 2025

6 minutes

Delivering bad news to employees is never easy, especially when you’ve worked alongside them for years. Unfortunately, this is a reality many managers now face.

The ongoing global recession triggered by the coronavirus pandemic has hit businesses hard. Lockdowns and public health restrictions have severely impacted many industries – particularly the service and tourism sectors. Some companies are downsizing or making employees redundant just to survive. In the U.S. alone, over 26 million jobs were lost within five weeks.

As a result, managers are having difficult conversations with employees daily. While it’s never a task you prepare for, it is possible to deliver difficult messages with empathy and professionalism.

During economic uncertainty, it’s vital that staff remain informed at both a company and personal level. Effective internal communications play a key role. While every situation is unique, some universal strategies can help. This post outlines best practices for communicating difficult news with care and clarity.

1. Prepare Thoroughly: Anticipate Questions and Concerns

Preparation is essential. Your employee will want to understand why the decision was made, how it was reached, and who was involved. Be ready to provide clear, transparent answers.

Anticipating questions gives you the opportunity to plan your responses and choose your words carefully. This preparation not only ensures accuracy but also gives you more confidence when entering the meeting.

Employees deserve honest, complete explanations. Investing time in this stage helps build trust, even in difficult circumstances.

2. Choose the Right Time and Setting

Timing and location matter. Avoid delivering bad news at high-stress moments – like first thing Monday morning before a team meeting. Aim for a private, uninterrupted setting.

If possible, share the news face-to-face. A video call is the next best option if your employee is remote. Avoid impersonal channels like email or text. Instead, consider how you’d want to receive similar news – respect and empathy go a long way.

Don’t delay the conversation once the decision has been made. Prolonging the inevitable increases anxiety and the likelihood of office rumors spreading misinformation.

Bad News Employees

3. Be Clear, Honest, and Compassionate

While it’s tempting to soften the blow, it’s important to be direct and respectful. Avoid vague language or euphemisms. Be honest about the situation and clearly communicate the facts.

An employee’s immediate reaction often depends on how the news is delivered.

That said, deliver the message with empathy. Your tone, body language, and word choice should reflect understanding and concern. Avoid fidgeting, slouching, or breaking eye contact – these non-verbal cues can undermine your message.

Take time to listen. Acknowledge their emotions and allow space for a reaction. Demonstrating empathy shows that you value their contribution, even in tough times.

4. Offer a Clear and Fair Explanation

Employees will naturally ask: “Why me?” and “Why now?” Begin the meeting with a clear statement of the decision, followed by a detailed explanation of how it was reached.

Avoid launching into generalized talk about the pandemic or the economy – the employee likely knows all this already. Focus on the specific business rationale and process that led to the decision.

Employees are more likely to accept tough decisions if they believe the process was fair and transparent.

Be objective. Even if you personally disagreed with the outcome, remain professional. Keep personal opinions for internal discussions with leadership, not with the employee in question.

5. Allow the Employee to Process and Vent

After explaining the situation, give the employee time to respond. They may experience shock, sadness, or frustration. Let them express their emotions freely.

Don’t interrupt or become defensive. Even if the reaction feels unfair, remain calm and composed. This is about providing space for the employee to process the information.

Avoid revisiting the same points repeatedly or getting drawn into debates. Instead, actively listen and affirm their feelings without arguing the case further. A compassionate ear can go a long way in difficult moments.

Explore Solutions With The Employee

If possible, try and finish the conversation on a positive note. Focus on potential future opportunities and be proactive in offering support. The employee is still a valued team member and deserves your assistance. Offer to write references, provide career transition support, or tap into your professional network to identify job openings that may be suitable.

Additionally, remind your employee about safeguarding their mental health and wellbeing during this challenging time. Encourage them to take care of themselves and seek support if needed.

Support The Remaining Team Members

Layoffs and redundancies often impact more than just those directly affected. The remaining team members may feel anxious about their own job security or experience sadness over the loss of a colleague. As a leader, it’s crucial to maintain transparency and encourage an open line of communication. Let employees know that your door is always open and actively invite them to express their concerns.

Implement multiple feedback mechanisms – not just for the most outspoken employees. A regular employee survey on the intranet can be an effective way to gauge team sentiment, especially when anonymous.

Consider launching a discussion forum or an executive blog where staff can safely raise issues. An ongoing dialogue helps maintain morale and gives you the opportunity to respond quickly to concerns before they escalate. Open communication fosters trust and demonstrates leadership during uncertain times.

While the Covid-19 pandemic has intensified the need to deliver difficult news, this skill is one every manager must develop. Regardless of the situation – be it performance issues, project cancellations, or budget reductions – leaders will inevitably face moments where they must deliver unwelcome news.

Case Study: How Airbnb’s CEO Handled Mass Layoffs

What does delivering bad news look like when done well? A standout example is the recent message from Airbnb’s co-founder and CEO, Brian Chesky. His approach to informing staff about company-wide layoffs offers a powerful lesson in how to communicate with empathy and clarity.

The Covid-19 crisis has taken a heavy toll on the tourism industry, and Airbnb was no exception. With bookings down 96%, the company faced significant financial strain. On May 5, 2020, Chesky announced the painful decision to lay off 25% of Airbnb’s workforce via a company-wide note. While face-to-face conversations are typically preferred, the scope of the layoffs made this alternative necessary.

From the start, Chesky’s message was honest and to the point: “Today I have to share some very sad news… We are reducing the size of the Airbnb workforce.”

Brian Chesky Note

After this clear opening, the note goes on to provide a detailed explanation of the decision, including the process and guiding principles. He clearly outlines the “How we approached reductions” and “Process for making reductions,” which helps staff understand the reasoning behind the move.

The message also discusses what the layoffs mean for both those leaving and those staying. Key areas like severance packages, equity, and healthcare benefits are broken down clearly. Chesky also outlines job support resources and details on future company direction, using section headings to ensure important information is easily found and digested.

What truly sets this communication apart is the empathetic tone. Chesky avoids corporate jargon and speaks directly to employees with warmth and sincerity. He refers to his staff as “teammates” and emphasizes a desire to “provide clarity.” His note recognizes the emotional toll on the workforce while reaffirming the company’s commitment to both its departing and remaining employees.

By being transparent, compassionate, and structured, Airbnb’s CEO showed that delivering bad news doesn’t have to damage morale or trust. On the contrary, it can reinforce leadership credibility and integrity.

Delivering Bad News To Staff: Main Takeaways

Here are the key principles to keep in mind when delivering bad news to employees:

  1. Be prepared. Anticipate questions and have clear, honest answers ready – especially to the “why” questions.
  2. Explain the rationale. Be direct and transparent. Avoid sugar-coating the message, but always remain respectful.
  3. Let employees process the news. Give them space to respond emotionally, and resist the urge to debate or justify the decision further.
  4. Offer meaningful support. Explore next steps together and provide resources such as references, job search assistance, or mental health support.
  5. Don’t forget the rest of the team. Reassure remaining staff and keep the lines of communication open to maintain morale and trust.

If your organization is facing a significant communication challenge and wants to improve its organizational communications, a modern intranet can make a real difference.

MyHub’s cloud-based intranet is simple to set up and easy to use. It comes equipped with powerful tools that help keep employees informed, engaged, and connected – whether they’re in the office or working remotely. From news feeds and discussion forums to instant messaging and employee surveys, MyHub’s all-in-one solution helps smooth the path through challenging times.

Start your free 14-day trial today or request a free demo with one of our intranet design experts to see how MyHub can support your team.

FAQ Section

Why is it important to deliver bad news to employees in person?

Delivering bad news face-to-face allows for immediate feedback, demonstrates empathy, and helps maintain trust between managers and employees.
atlassian.com

How can managers prepare for delivering difficult news?

Managers should anticipate questions, have clear explanations ready, and choose an appropriate time and setting for the conversation.

What should managers do after delivering bad news?

They should provide support to affected employees, maintain open communication with the remaining team, and address any concerns to preserve morale.

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