Leading Through Layoffs: Setting the Tone in Tough Times

As of April 2025, Canada's unemployment rate has risen to 6.9%, marking the highest level since November 2024 (which was the highest since January 2017, excluding the years 2020 and 2021, during the COVID-19 pandemic). This uptick reflects broader economic challenges, including U.S. tariffs impacting key industries like manufacturing and trade. Ontario, for instance, experienced a loss of 33,000 manufacturing jobs in April alone.

For HR professionals, these aren’t just numbers. They represent employees, teams and decisions that no one wants to make, but increasingly have to.

If your organization is facing layoffs, the challenge isn’t just managing the logistics. It’s handling the process in a way that protects people, maintains trust and upholds your culture - especially when stress is high and resources are stretched.

Learning from Airbnb’s 2020 Layoffs

One of the more widely discussed layoff communications in recent memory came from Airbnb in May 2020. At the height of the pandemic, the company made the difficult decision to let go of about 25% of its workforce.

What stood out wasn’t just the scale of the cuts - it was how they were handled.

In an open letter, CEO Brian Chesky communicated the news with clarity, empathy and humility. The company offered generous severance, extended health coverage and even launched a talent directory to help affected employees find new roles. It was a tough moment, but Airbnb’s approach became a reference point for how to balance business realities with human compassion.

Supporting Employees Through Layoffs: Key HR Practices

While no two situations are alike, HR professionals can draw on the following principles to guide their own layoff processes:

• Be Transparent

  Communicate the “why” behind the decision early and honestly. Clear messaging reduces speculation and builds trust, even in difficult moments.

  
  

• Offer Fair Compensation

  Provide severance and extended benefits where possible. Factor in tenure and individual circumstances to show that employees are valued.

  
  

• Support the Transition

  Offer outplacement services, references or resume support. Consider how you can help employees land on their feet, even if you can’t keep them on the team.

  
  

• Treat People with Dignity

  Layoffs aren’t just operational - they’re emotional. Avoid generic scripts and impersonal meetings. Give employees time, respect and empathy.

Tools and Templates to Help

To support a smooth and respectful transition, consider having key documents and supports ready:

• Employee Status Change Form: Keeps your HR records clean and compliant.

  
  

• Employee Assistance Program (EAP) Template: Helps you formalize access to mental health, career counselling and other supports.

  
  

• Offboarding Checklist: A structured checklist can help ensure consistency, cover critical steps (like revoking access or returning equipment) and give employees a sense of closure.

Final Thoughts

Layoffs will never be easy. But how we handle them speaks volumes about who we are as organizations and as leaders.

Airbnb’s 2020 example isn’t a formula, but it is a reminder: even in moments of loss, it’s possible to lead with clarity, care and integrity. And when you do, the impact lasts long after the final day.

For HR teams navigating these waters today, the goal isn’t perfection - it’s intention. Let’s get that part right. Need help? Reach out today.