Workplace Culture | Rebuilding Trust After Layoffs
Layoffs—even when necessary—leave a lasting mark on workplace culture. Beyond the immediate impact on those who exit, remaining employees often experience uncertainty, guilt, and decreased engagement. This emotional residue can quietly erode retention and productivity long after restructuring ends if not addressed.
To rebuild trust, leaders must move beyond the layoff announcement and actively reshape how the organization communicates, supports, and reconnects with its people.
Understanding the Post-Layoff Dip
After layoffs, it’s common for performance and morale to drop. Employees may question their job security, hesitate to take risks, or withdraw from collaboration. Even high performers can disengage if they feel the organization is no longer stable or transparent.
After layoffs, companies see a sharp decline in employee experience across key areas. According to a recent study, company confidence dropped by 17 percent, belief in career growth fell by 12 percent, and trust in leadership declined by 10 percent.
The path forward isn’t just about reassurance—it’s about rebuilding credibility.
Prioritize Consistent, Honest Communication
Employees don’t expect all the answers—but they do expect honesty. Vague reassurances can backfire, while clear, consistent communication helps reset expectations. Leaders should share what’s changing, what’s not, and how future decisions will be made. When trust has been shaken, transparency is the fastest way to start repairing it.
Reinvest in Relationships
Post-layoff, managers need to reconnect with their teams—not just through status updates, but through meaningful conversations. Acknowledge the strain, ask how people are doing, and create space for feedback. Even short check-ins go a long way in rebuilding connection and stability.
Make Retention Intentional
After a layoff, your remaining team is your priority. “Re-recruit” them. Show that they matter by investing in their development, recognizing their contributions, and giving them a say in shaping what comes next. Trust is rebuilt through follow-through—not just sentiment.
Culture Recovery Is a Leadership Priority
Layoffs may be over in a day, but their impact can linger for months. Addressing the emotional and cultural fallout with intention is critical. Organizations prioritizing rebuilding trust will recover faster—and help attract and retain top talent.
Originally featured in UBA’s May 2025 HR Elements Newsletter.
