Layoffs have become an all too familiar word in recent times. From massive upcoming layoffs in TCS to the continued announcements throughout different online gaming companies, India is seeing massive changes in the structure of many workplaces.
The sudden and impactful transitions that come in the wake of layoffs can have a heavy toll on one’s mental health. For those who are let go, the struggle of finding a new job and starting at a new workplace can be exhausting in many ways.
Similarly, those who are left behind might find themselves with survivor’s guilt. Additionally, within a team where certain employees might have been let go, others may struggle with the change in workload and patterns.
It is in such times that HR plays a crucial role in ensuring the emotional well-being of employees during layoffs and the transitions that follow.
Understanding the Emotional Impact
It is important for HR in any company to understand the emotional impact that the news of layoffs can have on the employees. Whether directly impacted or not, layoffs can create a sense of uncertainty and anxiety that can be hard to shake off.
As per the Global Talent Barometer June 2025 by the Manpower Group, only 54% of workers in India feel secure in their job roles over the following six-month period. The survey was conducted between March 14 and April 11, 2025, highlighting the recent sentiments about job security within the country.
In order to truly help the employees during such a jarring process, it is imperative that HR first understand just what the employees might be dealing with.
For Those Laid Off
Receiving the news of termination is never easy. Learning that you are one among the many whose jobs have been axed can lead to heightened stress and anxiety. What should be my next steps? Where will I go now? Questions like these are far too common in the minds of those who are directly impacted.
The loss of identity that comes with being laid off is not easy to deal with. Often, this can lead to negative feelings towards the employer. Depending on how the news is delivered and the preparation around it, employees might feel betrayed or unsupported due to circumstances that might be out of their control.
For Those Left Behind
Simply because an employee is not laid off does not mean that they are not affected by the process. The process itself can be taxing, with many employees remaining uncertain about their job security until the layoffs continue, following which they might find themselves struggling with survivor’s guilt.
There are also the changes that come with a reduction in the workforce and drastic alterations in team dynamics. For many, this can lead to an increase in the workload as well as changes in their tasks that they might find themselves ill-equipped to deal with.
Cultural Stigma
Despite a company’s reasons and assurances, there is a deep cultural stigma around being laid off. No matter the reason, many within India tend to equate this as a “personal failure” on the employee’s behalf, no matter the circumstances.
This knowledge can also significantly impact the laid-off employees who might either question their own abilities or wonder how to convince a potential employer of their qualifications, given the apparent “black mark” on their professional history.
Role of HR: The Three Phases
The layoff process can be ultimately divided into three parts: Before, During, and After. Each phase requires a unique kind of delicate touch from HR to make sure that the needs of the employers as well as the employees are met.
HR’s Role Before Layoffs
Before the layoffs start within the company, there are a few steps that an Hr professional should keep in mind to hopefully make the process as smooth as possible for all those who are involved:
- Transparent Communication: Being open about the process and the upcoming steps that the company aims to take can help significantly in reducing uncertainty.
- Train Managers: By training managers in how to convey news empathetically, companies can reduce negativity within the workforce and allow for an easy transition.
- Provide Mental Health Resources: With the knowledge of how much layoffs can impact the mental health of the employees, companies should look into providing mental health resources proactively, including EAPs, counselling hotlines, etc.
HR’s Role During Layoffs
The layoffs themselves are, as expected, the hardest part of the whole process. From delivering unwelcome news to many to addressing concerns of the impacted employees, this phase requires a delicate balance between assertiveness and empathy.
- Maintain Dignity: During any and all forms of communication, whether they are private conversations or mass emails, maintain dignity and empathy. This helps convey the message properly, but with consideration of its impact on others.
- Offer Support: In order to help the impacted employees with the transition, the company can offer outplacement support, resume workshops, and career counselling.
- Be Receptive: During this process, many employees seek HR’s help to express their concerns and anxieties. Be the support they need and help them in the ways that are possible to showcase your understanding.
HR’s Role After Layoffs
Even after the layoffs are completed, the HR’s work is far from done. Such a massive change leads to many ripple effects that should be addressed as efficiently as possible.
- Be Supportive: Offer the remaining employees means to express their concerns through open forums, town halls, and one-on-one conversations.
- Address the Complex Feelings: Be mindful of the impact that layoffs have on the remaining employees. HR can help address this through counselling sessions.
- Reinforce Job Security and Future Vision: Once the layoffs are completed, the company must reassure the remaining employees that their jobs are indeed safe. Communicate what the company plans on doing in the future and the role that these employees will play during the same. Reinforcing job security and the future vision of the company.
- Rebuild Trust and Image: It is almost expected that employees might feel their trust and morale shaken in the wake of layoffs. Employers need to take proactive steps to rebuild trust through recognition, team activities, and transparency.
Companies and Layoffs: Notable Examples
With the increasing number of layoffs, companies, both big and small, have approached the issue with due attention. Companies like TCS and Microsoft showcased an open approach to the process, with their top leaders being upfront about their mindset.
TCS on Supporting Laid-Off Employees
Despite criticism of Tata Consultancy Services (TCS) for its decision to lay off over 12,000 employees during FY26, the company appears to remain committed to the decision. That said, TCS has indeed showcased a willingness to help the employees impacted by its decision to restructure.
“This transition is being planned with due care to ensure there is no impact on service delivery to our clients,” TCS said in a statement. “We understand that this is a challenging time for our colleagues likely to be affected. We thank them for their service, and we will be making all efforts to provide appropriate benefits, outplacement, counselling, and support as they transition to new opportunities.”
Microsoft CEO on Layoff Guilt
Following the layoffs within Microsoft earlier in the year, Satya Nadella, the company’s Chief Executive Officer (CEO), expressed that the decisions made were hard and something he carries with him.
“Before anything else, I want to speak to what’s been weighing heavily on me, and what I know many of you are thinking about: the recent job eliminations. These decisions are among the most difficult we have to make,” Nadella shared with his employees in a statement. “They affect people we’ve worked alongside, learned from, and shared countless moments with—our colleagues, teammates, and friends.”
Nadella acknowledged that layoffs had brewed an atmosphere of uncertainty within the company. “By every objective measure, Microsoft is thriving—our market performance, strategic positioning, and growth all point up and to the right,” Nadella admitted, adding, “And yet, at the same time, we’ve undergone layoffs.”
Nadella’s decision to openly address the layoffs highlighted the company’s commitment to transparency. While the CEO’s words may not soothe every impacted employee, his decision to share what he envisions for the company does add a sense of honesty that can help significantly in navigating turbulent times.
In the End..
Layoffs, for some companies, can be an unavoidable prospect. Whether it’s due to a changing macroeconomic or political landscape, a shift in the company’s vision, or a need to downsize, the impact of layoffs on the mental health of the employees cannot be ignored.
The emotional well-being is not just an ethical responsibility; it also impacts employer brand, productivity, and retention. In times of uncertainty, HR’s role as a guardian of employee trust and well-being becomes more crucial than ever.
