Situations · Team
A layoff conversation is decided before it starts: set the criteria, the order, and the severance first, then the words. Three conclusions, common mistakes, three checks, three plays.
The outcome of a layoff conversation is decided before you open your mouth. Conversations rarely go wrong because of the wording. They go wrong because the selection criteria cannot be explained, the severance is not settled, or nobody has a plan for the people who stay.
The order of judgement is: criteria and list first, severance and timing second, and only then what to say in each conversation. Reverse the order and every conversation becomes a negotiation.
The conversation itself does three things only: state the decision clearly, explain severance and process clearly, and treat the person with respect. Do not over-explain, do not argue, and do not promise what you cannot deliver.
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The person asks why me, and you have no answer. A criterion you cannot state turns into rumour among the people who stay, and that does more damage than the layoff itself.
Three people today, two more next month. Everyone who remains waits for the next round, work stalls, and the best people leave first.
The person pushes back and you start explaining how hard things are for the company, or you soften and say you will think again. The decision is made; the conversation is not the place to remake it.
The people who stay watch how their colleagues are treated and conclude that this is how they will be treated. What you say to them on the day sets morale for the next three months.
Is the list based on eliminated roles, a shrinking business, or performance? Each person's reason must be sayable to their face and consistent with everyone else's. A criterion you cannot say is not a criterion.
Severance, notice period, benefits, and paperwork must be confirmed by legal or a qualified professional beforehand. Any number you get wrong in the room becomes a dispute later.
They will ask three things: why those people, will there be another round, and what happens to my job. Have those answers ready before the first conversation.
The Art of War, chapter 1, Laying Plans
Method and discipline: the marshalling of the army, the graduation of rank, the control of supply.
Sun Tzu lists organisation, responsibilities, and the control of resources among the five things to settle before any campaign. A layoff is an organisation marching with fewer people. Without rules, order, and supply settled first, even the best script is improvisation in the middle of confusion. Fix the method before the conversation.
The criterion is the easiest to state: the role is eliminated, and it is not about individual performance. Do it in one round, pay severance properly, and offer references and introductions. Tell the people who stay which business you are concentrating on, so they see the direction behind the cut.
The hardest criterion to explain. Replace the share with something you can say: overlapping roles, or business priority, rather than a percentage handed to each manager. Better a list one week late than a criterion you cannot state.
Do not mix them. Performance issues go through the performance process, with records and an improvement period. Hiding performance action inside a layoff tells the people who stay that anyone could be next, and it carries more legal risk.
Tell the strategist the background: why the layoff, how many, how the list was made, where the severance plan stands, and which conversation you dread most.
The strategist first checks the order, criteria, severance, the people who stay, and tells you which link is not ready, then compresses each conversation into three sentences you must say and three things you must not do.
You leave with an action card: the timetable for the day and the words for the people who stay, plus a signal that tells you the situation is slipping.
This page covers the order of judgement. Your own situation, opponent, and resources are worked through with the strategist in the app.
Get the app and run your situationTen to fifteen minutes. State the decision, explain severance and process, answer practical questions. The longer it runs, the more likely it turns into an argument or a promise you cannot keep. Emotional support belongs in a separate conversation, not this one.
Answer with the criterion you settled in advance, in one sentence, without comparing them to anyone else. If the role was eliminated, say the role was eliminated. If you cannot say it, the list itself has a problem, and you should have revisited it before the conversation.
Do not leak, but do it in one round. A leak makes everyone stop and wait. One round, followed by a clear explanation to the people who stay on the same day, lets the team get back to work within days.
Three things: the criterion for the list, whether there will be another round, and what the work focus is now. If you cannot promise there will be no further round, say under what conditions you will reassess. Honesty keeps people better than reassurance.
Team · When a key employee resigns, work out why they are leaving, which line breaks without them, and whether staying would actually stick, before choosing retention or handover.
Team · When morale drops, work out whether the cause is unclear direction, broken promises, or an overloaded team before reaching for incentives. Three conclusions, three plays.
Team · When co-founders clash, first work out whether it is a disagreement about direction, about roles, or a breakdown of trust, then decide whether to talk rules, division of labour, or separation.
Team · When a key role cannot keep up, work out whether the role changed, support is missing, or the fit is wrong before you coach, move, or replace. Three conclusions, three plays.
This page covers management judgement, not employment law. Notice periods, severance, procedure, and consultation duties differ by jurisdiction; follow local law and consult qualified professionals. Do not use Sun Tzu's language to justify coercion or mistreatment of staff.