Ask the expert: How to handle the effects of a layoff

Oct 01, 2024

Cover Layoffs can be emotionally and mentally stressful. Dr Joseph Leong shares his insights into how the bearers of bad news can manage the impact (Photo: Getty Images)

Layoffs can be emotionally and mentally stressful. Dr Joseph Leong shares his insights into how the bearers of bad news can manage the impact (Photo: Getty Images)

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From the stress experienced by the manager to the employee’s response after receiving the news, psychiatrist Dr Joseph Leong shares tips on managing the toll of company layoffs

According to Layoffs.fyi, 449 companies have laid off more than 137,500 employees worldwide—and this is just in the technology sector in 2024 alone. While the idea of company layoffs is as old as time, the approach to handling such a situation is less developed.

We can argue that there are a lot of guides on how founders and leaders can best deliver the bad news to an employee, but recent viral examples of badly handled layoffs have shown that there is still room for improvement—and compassion.

@brittanypeachhh Original creator reposting: brittany peach cloudflare layoff. When you know you’re about to get laid off so you film it :) this was traumatizing honestly lmao #cloudflare #techlayoffs #tech #layoff ♬ original sound - Brittany Pietsch

Having said that, we’re not here to add to the list of guides on how to let an employee go. These tips from Dr Joseph Leong of Promises Healthcare are for the managers who find themselves in the middle: the bearers of the bad news, who will have to navigate the effects of a layoff before and after it is done.

The challenge

Laying off a team member due to poor work performance isn’t easy. How can a leader deal with the stress they may feel from having to execute this challenging task? And how can they best manage the employee’s reaction, if the individual becomes depressed, in denial or disruptive to others in the company?

Dr Joseph Leong (JL): Laying off a team member due to poor work performance is one of the most challenging tasks a leader can face. This task can be particularly taxing in Singapore’s high-paced work environment, where stress levels are already considerable. In order to do this with a healthy and balanced approach for both the leader and the employee, many factors must be considered.

How managers can manage their emotions

JL: Leaders must recognise that feelings of guilt, anxiety or sadness are normal when laying off an employee. These emotions reflect empathy, a valuable trait in leadership. Ignoring these feelings can lead to increased stress and burnout. According to a 2016 study by the Singapore Mental Health Study, stress-related disorders are a significant concern, affecting about 13.4 percent of the population.

Engaging with a mental health professional can provide leaders with coping strategies tailored to their needs. Leaders can often feel isolated in their roles, and having a neutral third party to discuss their concerns with can alleviate the sense of loneliness and reduce stress.

Thorough preparation can also reduce anxiety. This includes documenting the reasons for the layoff clearly and practising the conversation to ensure it is handled professionally and empathetically. The Ministry of Manpower (MOM) in Singapore provides guidelines on conducting fair and respectful layoffs, emphasising the importance of preparation.

Regular self-care activities, such as exercise, mindfulness and spending time with family, can mitigate the stress associated with layoffs.

Handling the affected employee’s reaction

JL: If the laid-off employee reacts negatively, whether through depression, denial or disruptive behaviour, it’s crucial to manage the situation with care.

If an employee becomes depressed or anxious, it is essential to offer them access to mental health resources or professional support immediately. In Singapore, where stigma around mental health still exists, encouraging the use of these services is vital for the well-being of the individual.

Approach the situation with empathy, acknowledging its difficulty. Effective communication can de-escalate intense emotions. The Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment in Singapore advises employers to handle layoffs with empathy and transparency, which can help in managing employee’s reactions constructively.

If the employee becomes disruptive, setting boundaries while still being empathetic is important. Clear communication about acceptable behaviour and the need to maintain a professional environment can help manage the situation. After the layoff, it is essential to check in with the employee to see how they are coping. This shows that the organisation cares about their well-being beyond their role as an employee, which can help them feel supported during a difficult time.

If the employee’s behaviour negatively impacts the team, further action may be required to protect the morale and productivity of the remaining team members. This might involve human resource interventions or even engaging external consultants to manage the situation.

In conclusion, managing the stress of laying off a team member requires a balanced approach of self-care, preparation and empathetic communication.

Read Dr Leong’s insights on managing employee burnout and toxic colleagues.

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Tatler Asia

Ask the expert: How to handle the effects of a layoff

The challenge

How managers can manage their emotions

Handling the affected employee’s reaction