As companies tighten budgets and reset priorities, one veteran of the C-suite says the difference between a humane layoff and a harmful one comes down to planning and candor. The former chief people officer at several high-growth firms, Pav Stojkovic, has watched organizations announce job cuts with care, with chaos, and every result in between. His experience offers a clear view into what employers should do when jobs are on the line and trust is at risk.
“I’ve seen layoffs go well, poorly, and everything in between.” — Pav Stojkovic, former chief people officer
His point lands at a sensitive time. Technology and media companies have continued to trim headcount since the start of 2023. According to Layoffs.fyi, tech firms cut over 260,000 roles in 2023, with more reductions recorded in 2024. For employees, each announcement brings financial stress and confusion. For leaders, it tests credibility and culture.
The Stakes for Workers and Employers
Layoffs ripple through entire organizations. Departing employees face income loss and the strain of a job search. Teams that remain often carry more work and anxiety. Customers may see slower service. Investors question execution.
Experts say how leaders manage the process can reduce harm. Clear criteria, timely notice, and fair support signal respect. Weak communication and surprise announcements, by contrast, deepen fear and damage morale.
What “Good” Looks Like in Practice
Stojkovic’s view aligns with established guidance from HR groups. The Society for Human Resource Management advises planning that ties cuts to concrete business goals, consistent selection criteria, and direct, plain-language communication.
- Explain the business reason in simple terms.
- Apply objective selection criteria and document decisions.
- Give managers talking points and training.
- Offer severance, health coverage extensions, and job search help where possible.
- Share the plan for workload and priorities after the cuts.
“Good” also means people hear about their status directly from a manager, not by email or system lockout. Timing matters. Early-in-the-week, early-in-the-day conversations allow access to support and reduce confusion.
Common Mistakes That Backfire
Rushed planning can lead to unfair outcomes. Mixed messages raise doubts about strategy. Leaders who avoid questions lose credibility they may not regain.
Frequent errors include overpromising on future stability, using vague phrases about “restructuring,” and failing to coordinate IT and HR steps. Public announcements that precede individual notifications can add anger and mistrust.
Companies also misjudge the effort needed after the cuts. Survivors need a clear plan, adjusted goals, and visible leadership. Without this, performance can drop even if costs fall.
Legal and Ethical Guardrails
Compliance is basic but essential. In the United States, the federal WARN Act and similar state laws may require advance notice for larger layoffs. Employers should consult counsel early to set timelines and notices.
Fairness is not only legal. It is practical risk management. Consistent criteria, careful documentation, and unbiased review help protect against discrimination claims. They also reassure employees that the process was thoughtful, not arbitrary.
Signals of a Healthier Reset
Layoffs aim to reset costs, but they also reset expectations. Employees ask whether the strategy is sound, whether leadership is aligned, and whether the company can execute the plan.
Leaders who answer those questions directly tend to steady their teams. They set a smaller set of goals. They pause noncritical projects. They measure progress and report back. They invest in manager support, since frontline managers carry the hardest conversations.
What to Watch Next
Analysts expect workforce adjustments to continue in sectors dealing with higher capital costs and slower growth. Automation projects may change job mix even when hiring resumes. That means the challenge is not just cutting, but reshaping work and skills.
For Stojkovic, the lesson is simple. Process and tone matter as much as numbers. Leaders should prepare, speak plainly, and treat people with respect from start to finish. When they do, the organization can stabilize faster, and former employees can move on with dignity.
Companies considering cuts face a hard choice. But the approach is theirs to control. Clear reasons, fair methods, and steady follow-through separate the layoffs that heal from those that harm.
