{"id":8629,"date":"2026-07-22T09:00:31","date_gmt":"2026-07-22T09:00:31","guid":{"rendered":"https:\/\/www.aom.org\/today\/?p=8629"},"modified":"2026-07-16T20:18:25","modified_gmt":"2026-07-16T20:18:25","slug":"how-to-lead-ethically-after-announcing-layoffs","status":"publish","type":"post","link":"https:\/\/www.aom.org\/today\/how-to-lead-ethically-after-announcing-layoffs\/","title":{"rendered":"How to Lead Ethically After Announcing Layoffs"},"content":{"rendered":"<p>By <a href=\"https:\/\/www.aom.org\/today\/author\/marc-hogan\/\" target=\"_blank\" rel=\"noopener\">Marc Hogan<\/a><\/p>\n<p>A recent report by outplacement firm Challenger, Gray &amp; Christmas found that layoffs by U.S. employers in 2025 were at their highest level since 2020. Times of recession, stagflation, volatility, uncertainty, or economic headwinds can put the values that business leaders profess to hold into conflict when they decide to make job cuts.<\/p>\n<p>Academy of Management Scholar <a href=\"https:\/\/www.aom.org\/today\/sean-martin\/\" target=\"_blank\" rel=\"noopener\">Sean Martin<\/a> of the University of Virginia said that one of the most commonly espoused values among Fortune 500 business executives was, in various forms, \u201cWe care about people.\u201d However, when organizations conduct layoffs, even if the move may be what\u2019s best for profitability, the people who get laid off are inevitably harmed.<\/p>\n<p>This disconnect creates a \u201chuge cultural problem,\u201d Martin said. To address this quandary, Martin recommends that business leaders exercise empathy and look at their organization\u2019s culture to formulate the right message for the employees who remain.<\/p>\n<p>\u201cGoing back to the culture for cues about how to message this is going to be key to people in leadership positions,\u201d he explained.<\/p>\n<p>For instance, if caring about employees is part of the culture, then leaders might say that the layoffs were necessary for the long-term collective good of the company, while noting that it\u2019s their job to make the hard decisions that are the best for the organization, Martin observed.<\/p>\n<p>Further, if ethics and integrity are at the top of the organization\u2019s list of values, then the leaders need to offer transparency and take ownership of their decisions, Martin added. That could mean saying that while challenging macroeconomic conditions are partly to blame, the leaders also \u201cmade a mistake\u201d by hiring too many people when business was good, he noted.<\/p>\n<p>\u201cPeople feel more psychological safety when they believe their leaders feel okay admitting their fallibility,\u201d Martin said.<\/p>\n<p>At the same time, leaders may want to be wary about couching layoffs in purely financial terms.<\/p>\n<p>\u201cIt might not only be a financial reason,\u201d he explained. \u201cWe run a huge risk to our cultures if we make people feel like they are essentially a number and something to be monetized instead of a member of this team that we\u2019re trying to build.\u201d<\/p>\n<p>With transparency and messaging that are grounded in a culture of caring about employees, ethics, and integrity, leaders can mitigate the perception of hypocrisy, greed, or callousness.<\/p>\n<p>\u201cCutting jobs will always hurt, but you can try to create less of a gap between the organization you say you are and the decisions that people see you making,\u201d Martin said. \u201cThat gap is toxic.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Marc Hogan A recent report by outplacement firm Challenger, Gray &amp; Christmas found that layoffs by U.S. employers in 2025 were at their highest level since 2020. Times of recession, stagflation, volatility, uncertainty, or economic headwinds can put the values that business leaders profess to hold into conflict when they decide to make job [&hellip;]<\/p>\n","protected":false},"author":23,"featured_media":8631,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27,71,72,19],"tags":[],"sp_smart_badges":[],"ppma_author":[1051],"class_list":["post-8629","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-c-suite","category-communicating","category-ethics","category-leadership"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How to Lead Ethically After Announcing Layoffs - Academy of Management Today<\/title>\n<meta name=\"description\" content=\"Times of recession, stagflation, volatility, uncertainty, or economic headwinds can put the values that business leaders profess to hold into conflict when they decide to make job cuts. One of the most commonly espoused values among Fortune 500 business executives was, in various forms, \u201cWe care about people.\u201d However, when organizations conduct layoffs, even if the move may be what\u2019s best for profitability, the people who get laid off are inevitably harmed.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.aom.org\/today\/how-to-lead-ethically-after-announcing-layoffs\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Marc Hogan\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/how-to-lead-ethically-after-announcing-layoffs\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/how-to-lead-ethically-after-announcing-layoffs\\\/\"},\"author\":{\"name\":\"Marc Hogan\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/#\\\/schema\\\/person\\\/86484e6576ee05699094e15ac0eb37e2\"},\"headline\":\"How to Lead Ethically After Announcing Layoffs\",\"datePublished\":\"2026-07-22T09:00:31+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/how-to-lead-ethically-after-announcing-layoffs\\\/\"},\"wordCount\":434,\"image\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/how-to-lead-ethically-after-announcing-layoffs\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.aom.org\\\/today\\\/wp-content\\\/uploads\\\/2026\\\/04\\\/Boss_executive_telling_bad_news_in_corporate_meeting_cropped_1000x667.jpg\",\"articleSection\":[\"C-SUITE\",\"COMMUNICATING\",\"ETHICS\",\"LEADERSHIP\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/how-to-lead-ethically-after-announcing-layoffs\\\/\",\"url\":\"https:\\\/\\\/www.aom.org\\\/today\\\/how-to-lead-ethically-after-announcing-layoffs\\\/\",\"name\":\"How to Lead Ethically After Announcing Layoffs - Academy of Management Today\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/how-to-lead-ethically-after-announcing-layoffs\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/how-to-lead-ethically-after-announcing-layoffs\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.aom.org\\\/today\\\/wp-content\\\/uploads\\\/2026\\\/04\\\/Boss_executive_telling_bad_news_in_corporate_meeting_cropped_1000x667.jpg\",\"datePublished\":\"2026-07-22T09:00:31+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/#\\\/schema\\\/person\\\/86484e6576ee05699094e15ac0eb37e2\"},\"description\":\"Times of recession, stagflation, volatility, uncertainty, or economic headwinds can put the values that business leaders profess to hold into conflict when they decide to make job cuts. 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He has written about a range of subjects for The Financial Times, With Intelligence, Kellogg Insight, The New York Times, NPR, The Atlantic, Rolling Stone, Meatingplace, and Medscape. He spent eight years as senior staff writer at the music publication\u00a0Pitchfork. Prior to that, he held positions with various FT publications, as well as Bloomberg Businessweek. He has also written for New York magazine, SPIN, The Village Voice, Time Out New York, and The Chicago Tribune. He earned his bachelor's and master's degrees in journalism from Northwestern University.","sameAs":["https:\/\/aomtodayprod.wpenginepowered.com\/","https:\/\/www.linkedin.com\/in\/marc-hogan-00b34b1a"],"url":"https:\/\/www.aom.org\/today\/author\/marc-hogan\/"}]}},"authors":[{"term_id":1051,"user_id":23,"is_guest":0,"slug":"marc-hogan","display_name":"Marc Hogan","avatar_url":{"url":"https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/11\/marchogn-img.webp","url2x":"https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/11\/marchogn-img.webp"},"author_category":"1","first_name":"Marc","last_name":"Hogan","user_url":"https:\/\/aomtodayprod.wpenginepowered.com\/","job_title":"","description":"Marc Hogan is a freelance journalist, writer, and editor. He has written about a range of subjects for <em>The Financial Times<\/em>, <em>With Intelligence<\/em>, <em>Kellogg Insight<\/em>, <em>The New York Times<\/em>, <em>NPR<\/em>, <em>The Atlantic<\/em>, <em>Rolling Stone<\/em>, <em>Meatingplace<\/em>, and <em>Medscape<\/em>. He spent eight years as senior staff writer at the music publication\u00a0<em>Pitchfork<\/em>. Prior to that, he held positions with various FT publications, as well as <em>Bloomberg Businessweek<\/em>. He has also written for <em>New York<\/em> magazine, <em>SPIN<\/em>, <em>The Village Voice<\/em>, <em>Time Out New York<\/em>, and <em>The Chicago Tribune<\/em>. He earned his bachelor's and master's degrees in journalism from Northwestern University."}],"rttpg_featured_image_url":{"full":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2026\/04\/Boss_executive_telling_bad_news_in_corporate_meeting_cropped_1000x667.jpg",1000,667,false],"landscape":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2026\/04\/Boss_executive_telling_bad_news_in_corporate_meeting_cropped_1000x667.jpg",1000,667,false],"portraits":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2026\/04\/Boss_executive_telling_bad_news_in_corporate_meeting_cropped_1000x667.jpg",1000,667,false],"thumbnail":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2026\/04\/Boss_executive_telling_bad_news_in_corporate_meeting_cropped_1000x667-150x150.jpg",150,150,true],"medium":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2026\/04\/Boss_executive_telling_bad_news_in_corporate_meeting_cropped_1000x667-300x200.jpg",300,200,true],"large":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2026\/04\/Boss_executive_telling_bad_news_in_corporate_meeting_cropped_1000x667.jpg",800,534,false],"1536x1536":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2026\/04\/Boss_executive_telling_bad_news_in_corporate_meeting_cropped_1000x667.jpg",1000,667,false],"2048x2048":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2026\/04\/Boss_executive_telling_bad_news_in_corporate_meeting_cropped_1000x667.jpg",1000,667,false],"owl_elementor_thumbnail":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2026\/04\/Boss_executive_telling_bad_news_in_corporate_meeting_cropped_1000x667-600x400.jpg",600,400,true],"owl_elementor_team":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2026\/04\/Boss_executive_telling_bad_news_in_corporate_meeting_cropped_1000x667-350x450.jpg",350,450,true],"owl_elementor_testimonial":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2026\/04\/Boss_executive_telling_bad_news_in_corporate_meeting_cropped_1000x667-100x100.jpg",100,100,true]},"rttpg_author":{"display_name":"Marc Hogan","author_link":"https:\/\/www.aom.org\/today\/author\/marc-hogan\/"},"rttpg_comment":0,"rttpg_category":"<a href=\"https:\/\/www.aom.org\/today\/category\/c-suite\/\" rel=\"category tag\">C-SUITE<\/a> <a href=\"https:\/\/www.aom.org\/today\/category\/communicating\/\" rel=\"category tag\">COMMUNICATING<\/a> <a href=\"https:\/\/www.aom.org\/today\/category\/ethics\/\" rel=\"category tag\">ETHICS<\/a> <a href=\"https:\/\/www.aom.org\/today\/category\/leadership\/\" rel=\"category tag\">LEADERSHIP<\/a>","rttpg_excerpt":"By Marc Hogan A recent report by outplacement firm Challenger, Gray &amp; Christmas found that layoffs by U.S. employers in 2025 were at their highest level since 2020. Times of recession, stagflation, volatility, uncertainty, or economic headwinds can put the values that business leaders profess to hold into conflict when they decide to make job&hellip;","_links":{"self":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/posts\/8629","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/comments?post=8629"}],"version-history":[{"count":2,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/posts\/8629\/revisions"}],"predecessor-version":[{"id":9145,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/posts\/8629\/revisions\/9145"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/media\/8631"}],"wp:attachment":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/media?parent=8629"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/categories?post=8629"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/tags?post=8629"},{"taxonomy":"sp_smart_badges","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/sp_smart_badges?post=8629"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/ppma_author?post=8629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}