Mitigating the Trauma of Being Laid Off

Experiencing a layoff firsthand — that is, being laid off yourself — can be traumatic. Because trauma can accompany layoffs, for both witnesses and those who are laid off, dealing with layoffs necessarily includes dealing with trauma. So let me begin there. Trauma is an emotional response to an event perceived to be horrible. Examples of horrible events include "…an accident, crime, natural disaster, physical or emotional abuse, neglect, experiencing or witnessing violence, death of a loved one, war, and more." [APA 2025]

The APA continues, "Immediately after the event, shock and denial are typical. Longer term reactions include unpredictable emotions, flashbacks, strained relationships, and even physical symptoms like headaches or nausea." These are serious conditions. They're serious enough that the public has a right to expect that those who have the power to make decisions regarding layoffs also have an obligation to use that power responsibly.

Sometimes (and this might be one of those times) the most effective way to clarify an obligation to act responsibly in a given situation is to provide a handbook for acting irresponsibly in that situation. What follows are concise guidelines for discharging management responsibilities so as to create the greatest possible amount of offense and misery among the people laid off, their friends, associates, and families, and in society in general. Following each guideline, I offer suggestions to employees who might want to prepare for irresponsibly executed layoffs. In what follows, I refer to laid-off employees as "former employees" or "Formers."

Close off access to all facilities

Provide access only to those employees engaged in activities related to the layoffs: closing buildings, receiving recalled equipment, and escorting Formers to exits are examples. Provide escorts for Formers to retrieve personal property at a time convenient for the employer. Any Formers on premises at the time that facility is first closed down are escorted to exits. Formers operating employer's vehicles of any kind are instructed to return to base immediately.

How employees can prepare

As an employee at risk of being laid off, there are steps to take that mitigate the effects of building closures. Minimize the volume and weight of personal property you keep at work. If there are items of your own that you need at work, having duplicates at home reduces the need to retrieve any items that are at work. You then have less need (or no need) to enter the employer's premises after the layoff.

Lock down all data

All data needed to perform the functions of any Former must be locked down to prevent export. After the return to normal operations with trusted replacements for Formers, that data will be needed. Locking it prevents tampering in the interim.

How employees can prepare

Unless your employer explicitly forbids it (and most do), encrypt all data allocated to you to perform your function. You might need leverage after the layoff, and encrypting your data might provide it. Further, encryption reduces the chance that your employer might use that data in legal action against you after the layoff. Some people just delete whatever they were working on up to the date and time of the layoff, but if automatic backups were in place, deleting files doesn't cause the employer much trouble.

Squeeze Formers financially

Most jurisdictions regulate the timing of delivery of severance payments to Formers. Delaying payments by the maximum time consistent with regulations helps to limit the ability of Formers to protest or otherwise engage in activity harmful to employers.

How employees can prepare

Employees who expect layoffs to occur would be wise to reduce recurring personal expenditures and any personal expenditures not strictly necessary. Attend to health care issues while you still have employer-paid benefits.

Terminate access by Formers to employer-owned communications systems

Access by Formers to email systems, text messaging, and telephone systems (mobile and land-based) is terminated without notice or explanation. Any hardware in possession of Formers is electronically shut down. Any attempt to use any of these systems triggers a notification to users that further attempts to use them will be treated as trespass and prosecuted.

How employees can prepare

Establish your own communications infrastructure in advance of any layoffs: email, mobile phone, videoconferencing capability, home Internet access, well-equipped home office, and so on. Transport any data you need from work to home, such as telephone numbers, email addresses, passwords, or URLs.

Provide limited access to hotlines for questions

Limited telephone assistance is available, on recorded lines. Formers can call in for assistance, but there is no need for these lines to be staffed at levels needed for immediate service. Next-day service, four-hour recorded callback, or six-hour live callback should be more than sufficient. To the extent possible, deal with questions from Formers by recorded message.

How employees can prepare

Retain legal counsel in advance of the layoff. Consult with counsel about your rights and employer obligations. Learn how and what you can record, and what information you should capture during the layoff events and other related events.

Limit the ability of Formers to establish support groups

Employer's ability to control such activity is constrained, but less constrained than many believe. For example, the employer can usually prohibit the use of employer's brand names and organizational names. Formers run afoul of this prohibition when they name Web sites or discussion groups using the employer's name or trade names. And most Formers are resource-constrained. Employers can exploit this by initiating legal action against any Formers who take action to form groups that might present legal threats to the employer.

How employees can prepare

Consult legal counsel in advance of the layoffs. Seek advice as to restrictions regarding public-facing names of Web sites, social media accounts, and discussion groups.

Last words

Yours is not the only organization that has ever experienced layoffs. Consider joining an anonymous networking group to seek advice from people who've already traveled the path you might soon be travelling. Example: TeamBlind.com. And national publications (Web or print) occasionally publish lists of tips that might include something you haven't thought of. Example: Forbes.com.  Top    Next Issue

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More about layoffs

Doorknob Disclosures and Bye-Bye Bombshells  [July 10, 2002]

A doorknob disclosure is an uncomfortable, painful, or embarrassing revelation offered at the end of a meeting or conversation, usually by someone who's about to exit. When we learn about bad news in this way, we can feel frustrated and trapped. How can we respond effectively?

Double Your Downsizing Damage  [July 17, 2002]

Some people believe that senior management is actually trying to hurt their company by downsizing. If they are they're doing a pretty bad job of it. Here's a handy checklist for evaluating the performance of your company's downsizers.

What's So Good About Being Laid Off?  [December 25, 2002]

Layoffs during the holiday period of November 15 through January 15 are far more common than you might think. Losing your job, or fearing that you might, is always difficult, but at this time of year it's especially helpful to keep in mind that the experience does have a bright side.

Beyond WIIFM  [August 13, 2003]

Probably the most widely used tactic of persuasion, "What's In It For Me," or WIIFM, can be toxic to an organization. There's a much healthier approach that provides a competitive advantage to organizations that use it.

Encourage Truth Telling  [November 19, 2003]

Getting to the truth can be a difficult task for managers. People sometimes withhold, spin, or slant reports, especially when the implications are uncomfortable or threatening. A culture that supports truth telling can be an organization's most valuable asset.

Those Across-the-Board Cuts That Aren't  [July 14, 2004]

One widespread feature of organizational life is the announcement of across-the-board cuts. Although they're announced, they're rarely "across-the-board." What's behind this pattern? How can we change it to a more effective, truthful pattern?

Organizational Loss: Searching Behavior  [April 16, 2008]

When organizations suffer painful losses, their responses can sometimes be destructive, further harming the organization and its people. Here are some typical patterns of destructive responses to organizational loss.

How to Avoid a Layoff: The Inside Stuff  [January 28, 2009]

These are troubled economic times. Layoffs are becoming increasingly common. Here are some tips for changing your frame of mind to help reduce the chances that you will be laid off.

How to Avoid a Layoff: Your Relationships  [February 4, 2009]

In troubled economic times, layoffs loom almost everywhere. Here are some tips for reconfiguring your relationships with others at work and at home to reduce the chances that you will be laid off.

How to Avoid a Layoff: Your Situation  [February 11, 2009]

These are troubled economic times. Layoffs are becoming increasingly common. Here are some tips for positioning yourself in the organization to reduce the chances that you will be laid off.

Four Popular Ways to Mismanage Layoffs: I  [February 18, 2009]

When layoffs are necessary, the problems they are meant to address are sometimes exacerbated by mismanagement of the layoff itself. Here is Part I of a discussion of four common patterns of mismanagement, and some suggestions for those managers and other employees who recognize the patterns in their own companies.

Four Popular Ways to Mismanage Layoffs: II  [February 25, 2009]

Staff reduction is needed when expenses overtake revenue. But when layoffs are misused, or used too late, they can harm the organization more than they help. Here's Part II of an exploration of four common patterns of mismanagement, and some suggestions for those managers and other employees who recognize the patterns in their own companies.

Coping with Layoff Survival  [March 25, 2009]

Your company has just done another round of layoffs, and you survived yet again. This time was the most difficult, because your best pal was laid off, and you're even more fearful for your own job security. How can you cope with survival?

Teamwork Myths: Conflict  [June 17, 2009]

For many teams, conflict is uncomfortable or threatening. It's so unpleasant so often that many believe that all conflict is bad — that it must be avoided, stifled, or at least managed. This is a myth. Conflict, in its constructive forms, is essential to high performance.

Teamwork Myths: I vs. We  [July 1, 2009]

In high performance teams, cooperative behavior is a given. But in the experience of many, truly cooperative behavior is so rare that they believe that something fundamental is at work — that cooperative behavior requires surrendering the self, which most people are unwilling to do. It's another teamwork myth.

Hyper-Super-Overwork  [August 5, 2009]

The prevalence of overwork has increased with the depth of the global recession, in part because employers are demanding more, and in part because many must now work longer hours to make ends a little closer to meeting. Overwork is dangerous. Here are some suggestions for dealing with it.

What Is Workplace Bullying?  [March 3, 2010]

We're gradually becoming aware that workplace bullying is a significant deviant pattern in workplace relationships. To deal effectively with it, we must know how to recognize it. Here's a start.

Sixteen Overload Haiku  [October 27, 2010]

Most of us have some experience of being overloaded and overworked. Many of us have forgotten what it is not to be overloaded. Here's a contemplation of the state of overload.

Self-Serving Bias in Organizations  [July 20, 2011]

We all want to believe that we can rely on the good judgment of decision makers when they make decisions that affect organizational performance. But they're human, and they are therefore subject to a cognitive bias known as ``Em''self-serving bias``/Em''. Here's a look at what can happen.

Pariah Professions: I  [June 5, 2013]

In some organizations entire professions are held in low regard. Their members become pariahs to some people in the rest of the organization. When these conditions prevail, organizational performance suffers.

Changing Blaming Cultures  [March 5, 2014]

Culture change in organizations is always challenging, but changing a blaming culture presents special difficulties. Here are three reasons why.

Constancy Assumptions  [July 16, 2014]

We necessarily make assumptions about our lives, including our work, because assumptions simplify things. And usually, our assumptions are valid. But not always.

Rationalizing Creativity at Work: II  [November 5, 2014]

Creative thinking at work can be nurtured or encouraged, but not forced or compelled. Leaders who try to compel creativity because of very real financial and schedule pressures rarely get the results they seek. Here are examples of tactics people use in mostly-futile attempts to compel creativity.

Why We Don't Care Anymore  [April 8, 2015]

As a consultant and coach I hear about what people hate about their jobs. Here's some of it. It might help you appreciate your job.

Managing Wishful Thinking Risk  [October 21, 2015]

When things go wrong, and we look back at how we got there, we must sometimes admit to wishful thinking. Here's a framework for managing the risk of wishful thinking.

Wishful Significance: I  [December 16, 2015]

When things don't work out, and we investigate why, we sometimes attribute our misfortune to "wishful thinking." In this part of our exploration of wishful thinking we examine how we arrive at mistaken assessments of the significance of what we see, hear, or learn.

Nine Brainstorming Demotivators: I  [January 31, 2018]

The quality of the output of brainstorming sessions is notoriously variable. One source of variation is the enthusiasm of contributors. Here's Part I of a set of nine phenomena that can limit contributions to brainstorm sessions.

Conway's Law and Technical Debt  [January 30, 2019]

Conway's Law is an observation that the structures of systems we design tend to replicate our communication patterns. This tendency might also contribute to their tendency to accumulate what we now call technical debt.

Layoff Warning Signs: I  [August 21, 2024]

One of the better career moves you can make is leaving your current position before your employer conducts layoffs. When you choose the time, you aren't under pressure and you make better decisions. Here are eight warning signs of coming layoffs.

Layoff Warning Signs: II  [August 28, 2024]

Layoffs often signal their arrival well in advance, if you know what to watch for. Some of the indicators are subtle and easily confused with normal operations. Here are three more indicators that layoffs might be secretly underway.

Beating the Layoffs: I  [September 4, 2024]

If you work in an organization likely to conduct layoffs soon, keep in mind that exiting voluntarily before the layoffs can carry significant advantages. Here are some that relate to self-esteem, financial anxiety, and future employment.

Mitigating the Trauma of Being Laid Off  [April 2, 2025]

Trauma is an emotional response to horrible events — accidents, crimes, disasters, physical abuse, emotional abuse, gross injustices — and layoffs. Layoff trauma is real. Employers know how to execute layoffs with compassion, but some act out of cruelty. Know how to defend yourself.

Footnotes

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Coming April 30: On Planning in Plan-Hostile Environments: II

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