WHAT LAYOFFS REVEAL ABOUT COMPANY CULTURE

For the past year and a half, I’ve had a front-row seat to something fascinating and heartbreaking: three of the companies I work with went through massive layoffs. What struck me wasn’t just the pain of these moments, it was how dramatically different each company’s employees reacted to essentially the same situation.

Same economic pressures. Same difficult business decisions. Completely different human responses.

The difference? Company culture. And what I witnessed showed me just how much our workplace relationships and trust—or lack thereof—shape how we handle crisis.

COMPANY ONE: ANGER AND BETRAYAL

In the first company, I was allowed to speak one last time to those who were let go, offering what they called “layoff support coaching.” The conversations were thick with emotions—and none of it was good.

They were angry, resentful, hurt to their core. No good words came out of their mouths about leadership, about the company, about their experience there. And honestly? It was completely understandable.

But here’s what really struck me: those who stayed felt the same way. There was anger, resentment, a deep sense of betrayal, and disrespect. They felt terrible for their colleagues who were let go, but their fury was directed squarely at leadership.

Of course, there was fear about their own job security. But more than that, there was a complete breakdown of loyalty. Finger-pointing, shaming, and blaming. Their mindset was “How fast can I get out of here?” The collective attitude was essentially: screw this company.

Photo creds Miriam Burke

COMPANY TWO: SHOCK AND PARALYSIS

The second company also allowed me to meet with departing employees, and this time, the energy was completely different. Instead of anger, I found confusion, shock, deep sadness, fear, and disappointment.

From their perspective, these people didn’t see it coming. There had been no real warnings, no transparency about the company’s struggles. They had poured themselves into their work—their teams, their products, their customers. The sense of betrayal wasn’t just about losing their jobs; it was about being blindsided after giving so much.

The survivors weren’t angry; they were terrified. They were waiting for the other shoe to drop, constantly asking: “What should I do? Should I just keep doing what I’ve been doing but better? Should I start looking for a new job?”

How can anyone do good work under these circumstances? In both companies, the emotions were overwhelming. Their amygdala had completely taken over—no room for rational thinking, strategic planning, or collaborative problem-solving.

COMPANY THREE: UNDERSTANDING AND RESOLVE

After witnessing two very different but equally difficult responses, I was curious what I’d find at the third company. The employees who were let go weren’t offered a final coaching session, but I offered one anyway. I had worked with some of them for years, and I wanted to check in.

What I discovered couldn’t have been more different.

Yes, the layoffs were a surprise and came as a shock. But somehow, it wasn’t completely unexpected. These employees had some insight into the company’s financial situation. And they understood the broader economic climate and job market challenges of the industry.

Their reaction floored me: they understood why the decision was made.

Don’t get me wrong, they didn’t like it. They had just lost their jobs. But they understood the business rationale and even showed a kind of respect for leadership having to make an impossible choice.

Those who stayed felt sad and guilty about their colleagues leaving. But instead of panic or resentment, they told me they wanted to help their friends find new jobs. More importantly, they said they wanted to help their company recover so there wouldn’t be more layoffs.

There was genuine sadness, but there was also a “let’s work together to turn this around” mentality.

And here’s something telling: the employees from this third company were the fastest to find new jobs. While people from the other companies were still processing anger or paralyzed by fear, these individuals were already moving forward with clarity and confidence.

Image creds Miriam Burke

WHAT MADE THE DIFFERENCE?

Same economic pressures. Same type of difficult decision. Three completely different responses.

The difference wasn’t the severity of the cuts or the financial situation of the companies. It was the foundation of trust, transparency, and relationship that existed—or didn’t exist—before the crisis hit.

Company One had a culture where employees felt disconnected from leadership and decision-making. When crisis struck, that disconnect became a chasm of resentment.

Company Two had a disconnect between leadership awareness and employee understanding. Whatever the reason, employees had little insight into the company’s financial situation. When layoffs became necessary, that lack of transparency felt like betrayal.

Company Three had built a culture of transparency and shared responsibility. Employees understood the business, trusted leadership’s judgment, and saw themselves as partners in both the struggles and the solutions.

THE REAL COST OF CULTURE

Here’s what keeps me up at night: in companies one and two, the layoffs created a secondary crisis. Not only did they lose talented people, but those who stayed were either actively disengaged and angry or paralyzed by fear. The very people they needed to help the company recover were emotionally unavailable to do that work.

In company three, the layoffs were still painful and disruptive. But the foundation of trust meant the remaining team could channel their energy into recovery rather than resentment.

Culture doesn’t prevent difficult business decisions. But it absolutely determines whether your organization emerges from crisis stronger or weaker.

BUILDING BEFORE YOU NEED IT

The tragedy, and the opportunity, is that this kind of resilient culture isn’t built during the crisis. It’s built in the months and years before, through hundreds of small decisions about transparency, respect, and trust.

When leaders regularly share context about business challenges, when employees understand how decisions get made, and when there’s a foundation of mutual respect, that’s when teams can weather storms together.

The companies that will thrive coming out of these difficult times aren’t necessarily the ones with the best financial positions. They’re the ones where people choose to stay and fight for recovery rather than flee or freeze.

If you’re leading a team through this kind of transition and want to talk through what focused rebuilding might look like for your specific situation, let’s chat. Every team’s path forward is different, but the destination (a group that works together with trust, clarity, and shared purpose) is worth the effort.

Focusing on what matters most, let’s strengthen our teams and transform how we work together.

 With love and gratitude,

Miriam

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