Cultures of Wellbeing: Compassionate Layoffs

Feb 19

We know that 2025 was an incredibly difficult year for nonprofits. In all honesty, we are cautiously hopeful that 2026 might bring with it more resources that support wellbeing in nonprofit workplaces. As a community, we continue to learn a great deal about what wellbeing is—and what it isn’t. What we know to be true is that things are trending positively in the world of nonprofit wellbeing (check out our newest blog series, The Bi-Weekly Wellbeing Brief). While many of these updates are promising, they also speak to the very real challenges and pain points that nonprofit and social impact professionals continue to experience. People are still burning out. People are still facing uncertainty. And unfortunately, the sector as a whole continues to navigate layoffs.

Throughout 2025, we were able to support several organizations who were either considering layoffs or living with the fear of having to make the impossible decision. We learned a lot from the best and worst case scenarios. This edition of Cultures of Wellbeing is a collection of some of our best insights from conversations with our nonprofit community, as well as from other consultants in our ecosystem who stepped up with compassion to support organizations through layoffs.

This edition will take a different format than our typical Cultures of Wellbeing blogs. Instead, we’re sharing five practical tips that may be worth exploring if you are a leader facing layoffs.

1. Create a Thoughtful Communication Plan

Communication is key. We know that many employers get hung up walking the fine line between being transparent and avoiding legal trouble. While we are not legal experts and cannot give advice on employment law, we can say with the utmost confidence that the most important thing you can do for your staff in the face of layoffs is to keep things honest, transparent, and timely.

Case in point: Over the 2025 holiday break, we heard far too many stories from leaders who learned about the risk of organizational layoffs just a few days before Christmas—a time when people are trying to prepare for rest, restoration, and celebration. What we hear over and over again is that communicating layoffs at a time (especially in an unclear way) disrupts people’s sense of joy and rest, and can be incredibly disorienting and hurtful. Timing, environment, and context matters.

When it comes to transparency, we want to quote one of our favorite leadership experts, Simon Sinek:

“Transparency doesn't mean sharing every detail. Transparency means providing the context for the decision we make.” We know that some layoff details emerge unexpectedly, and that might put leaders in a tough position when it comes to communicating in a timely way. Even so, making the best possible effort to create caring, contextual conditions for delivering difficult news is critical. A lack of clear communication in the layoff process is what often leads to colleagues airing out their layoff experience publicly. Keep in mind that a poorly communicated layoff process could lead to bad PR and a bruised reputation.

2. Create the Right Space to Communicate

Context and timing matters, but so does the environment. At the end of the day, no one wants to hear bad news, and everyone receives it differently. Do not assume there is only one right way to deliver a hard message.

Our recommendation is to communicate in person or, at the very least, on camera. While it may be easier to send an email and direct people to HR, it is more compassionate—and more courageous—to be present with the person who is receiving tough news. In our experience, the preference for sharing news in a group versus in a one-on-one setting varied across organizations. Nevertheless, all organizations agreed that delivering the news face-to-face made all the difference.

When it comes time to deliver the message, be prepared to answer questions. There might be questions that are beyond your capacity, or questions that hint at inequities or unfair decisions. Know that it’s okay if you don’t have all the answers, but also make sure to do your homework and collect resources to help your colleagues in getting the answers they need. You don’t want to leave people hanging on the cliff as they anxiously wait to find out more information. If there are more details to be shared that you don’t have access to, be sure to lead with transparency and clear communication in your follow up process.

3. Care for the People Who Are Departing

Our third tip is to express authentic care for the people who are leaving. It is easy to default to the idea that because people have to leave in order to sustain the organization, they should be treated as expendable assets. While that may make sense on paper, let's remember that people are not paper! They are complex humans with real emotions.

No one wants to hear that they were cut to save the organization. Even if this is true, it is far more meaningful to communicate how valuable people are, and how unfortunate circumstances (aka, context) led to their departure. This approach can boost their impact without crushing their self-worth.

Now, despite the context, people may still internalize layoffs as proof that they were not valued or that their work didn’t matter. To the best of your ability, it is important to help them separate their worth from the decision to cut positions. The good news is, there are many, simple ways to help people feel valued before they leave. Here are a few of our favorite that we learned from our friends over at Monsoon Leadership:

Create a list of their contributions and the positive impact they’ve had

Even with a tight budget, you can create time for intentional meetings or small gatherings focused on celebrating their work
Even if you do not have the means to provide severance, consider a title promotion—even if it comes without a pay increase. A title can carry meaningful weight as someone transitions back into the job hunt
Leverage your existing network to help someone find a new role. If there are other organizations doing similar or adjacent work, reach out and see if they have capacity to bring someone on. Many of these nonprofit skills are transferable, and warm introductions can make a real difference
If you do have some funding available, consider offering support beyond cash. Access to career coaching, resume support, or job search guidance can help departing staff feel genuinely supported during a difficult transition

Finally, while performance may be a factor in layoff decisions, no one wants to hear that they’re being cut because they were the “weakest link.” Even in these situations, it is still important to communicate people’s value. If someone asks questions about the decision to cut their position, additional details can be shared with guidance from legal counsel or HR. Make sure your initial message remains grounded in dignity and respect.

4. Support the People Who Are Staying

This fourth tip is often overlooked. During layoffs, attention is understandably focused on those who are leaving. But the people who stay are impacted in significant ways as well. Those who remain may experience grief over losing colleagues they cared about–or a professional form of survivor’s guilt. They may wonder why they stayed while others had to go.

In the social impact sector, layoffs often occur while organizations are still expected to produce the same outcomes with fewer people. This means those who stay are frequently asked to absorb additional work. If this redistribution of work is not planned for or communicated clearly, it can quickly escalate into resentment and conflict. There must be a clear plan for how responsibilities will shift after a layoff, and honest conversations about capacity and willingness to continue under new conditions.

If resources allow, consider investing in support for remaining staff just as you would for those who are departing. Emotional capacity coaches, leadership coaches, strategic planning, or other support resources can help people navigate the transition and sustain themselves through a challenging period.

5. Take Care of Yourself as a Leader

Last—but certainly not least—is staying in your leadership values. If your organization is facing layoffs, there is a chance you are among those who are staying. You may also be the person responsible for delivering the news to those who must depart.

Leaders often become the face of blame for layoffs, even when the circumstances are beyond their control. While you cannot control how others perceive you, you can control how you show up and how you care for yourself during one of the hardest responsibilities a leader can face. As you develop your layoff plan, make sure your own needs are included. Seek support—whether from a coach, a board member, or peers in other organizations facing similar challenges. Be prepared to be transparent not only about the decision itself, but about your role in it and how it affects you.

Two important caveats:

Do not deflect blame. People do not want to hear that the decision “wasn’t yours” while you are the one delivering the message. Acknowledge that the decision has been a difficult one, that no one wanted this outcome—including you—and that this is the reality the organization is navigating.
Do not hijack others’ emotional experiences with your own. Layoff processes are hard for everyone involved. However, if you have to tell someone else that they’re out of a job, then they likely will need your full attention and empathy for what they are feeling. Be mindful to not override their experience with how difficult the decision is for you.

We often see leaders become scapegoats, with assumptions made about how leadership protected themselves at the expense of firing others. Be transparent about what is changing for you as a result of the layoffs—whether that includes a salary reduction, taking on additional work, or other adjustments.

A Final Reflection

There is no perfect way to lead a layoff. But there are ways to reduce harm, preserve dignity, and model care—even in the hardest moments. Compassionate layoffs don’t erase pain. They do, however, send a powerful message about values, integrity, and what kind of culture remains on the other side.

Join the Conversation!

At Do Good Leadership Collective, we believe that nonprofit employees shouldn’t just survive their work—they should thrive in it. If you need support in navigating layoffs, then get in touch.

If this post resonated with you, or it became one of your favorite blogs about nonprofits, share it with your network or reach out to continue the conversation!

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