Delivering layoff news is one of the hardest responsibilities any manager will ever face. It’s not just a conversation, it’s a moment that shapes how someone remembers their experience, the company, and even themselves. While financial pressures or strategic shifts may make layoffs necessary, how you deliver the message can matter just as much as what you say.

At People Architects, we believe these conversations can and should be handled with dignity. We help leaders not only plan reductions in force with fairness and strategy, but also prepare to communicate with humanity, clarity, and care. Because the way you show up in this moment will echo far beyond the meeting room.

Here are five practical tips for managers navigating layoffs with responsibility and compassion.

As the fourth quarter begins, many small business owners start reviewing their year — the wins, the challenges, and the financial outlook heading into next year. It’s also the time when tough staffing decisions sometimes surface. While no business owner wants to consider layoffs, understanding why they often happen at the end of the year can help you make thoughtful, strategic choices that protect both your people and your business.

Why Q4 Is a Common Time for Layoffs

For most businesses, the end of the year means budget reviews and planning for the year ahead. When revenue falls short of projections or costs rise faster than expected, owners may need to make adjustments to ensure long-term stability. Payroll is often a company’s largest expense, so staffing changes can become part of that conversation.

Additionally, as companies evaluate performance and set new goals, they may reorganize teams or shift priorities. Sometimes this means eliminating roles that no longer align with the business strategy or combining positions to increase efficiency.

Other Common Timing Triggers

While Q4 is a natural reflection point, layoffs can happen at other times too:

• After quarterly reviews (Q1 or Q3): When results reveal financial pressure or slow growth.
  

• After mergers or reorganizations, When overlapping roles are identified.
  

• After market or funding changes: Particularly in industries sensitive to economic swings, such as manufacturing, tech, or nonprofits.

How to Approach the Process with Care

If you find yourself facing this decision, remember that how you handle a layoff matters as much as why it’s happening. Employees deserve honesty, clarity, and compassion. Explain the business reasons behind the change and reassure them that the decision is not a reflection of their performance.

Many small businesses choose to offer outplacement support to help affected employees navigate their next step — from resume and interview coaching to job search guidance. This not only supports those leaving the company but also builds trust with those who remain.

Creating a workplace where employees feel safe, valued, and respected is not just good practice, it’s essential for business success. Harassment in the workplace can damage trust, lower morale, and increase turnover. While many organizations have policies in place, prevention takes more than documents. It requires consistent action, leadership, and culture.

Here are five practical ways organizations can help prevent harassment at work.

The Smartest Leaders Don’t Do It Alone

Leading an organization is fun and exciting. But it can also be isolating, especially when the stakes are high, the pressure is rising, and tough decisions are on the line.

We’ve seen firsthand how valuable it is for leaders to have someone in their corner. Not a board member, not a direct report, not a friend, but a seasoned, strategic, and unbiased coach. Someone who understands business, understands people, and helps leaders think clearly under pressure.

Every leader needs a sounding board. And for one of our long-time clients, that sounding board helped save her company.

When Leadership Gets Lonely

Three years ago, we began working with a CEO who was facing one of the hardest moments in her career. Her business was in a financial crisis, payroll was uncertain and the high performing leadership team she hired was now underperforming. The weight of every decision rested squarely on her shoulders.

The hardest part? She knew what needed to change, but didn’t have the right people in the right seats to support and navigate the changes required to turnaround the business.

This organization had to make difficult, high-stakes decisions:

• Laying off employees to stabilize cash flow

• Restructuring leadership, accounting, and internal communication

• Rebuilding trust across the organization

She was leading alone, overwhelmed, and without anyone to safely think out loud with.

From Overwhelmed to Focused: Coaching for Busy Leaders

That’s when Meg Mayhugh, founder of People Architects and an experienced executive and business coach, stepped in.

As an outside advisor with no internal politics or personal agenda, Meg became the CEO’s trusted thought partner. They began meeting weekly, using each session to assess the business with fresh eyes, talk through challenges, and make decisions with clarity, not panic.

Meg helped her:

• Identify what was broken and what could be fixed
  
  

• Think through the financial implications of every move
  
  

• Make hard leadership calls with confidence
  
  

• Communicate more effectively with employees
  
  

• Hire stronger leaders to rebuild the team and culture
  
  

Dedicating a Space to Think

The turnaround didn’t happen overnight. There were long weeks and tough conversations. But today, ther CEO is leading a stronger, more stable business with a leadership team she trusts and a clear vision for what’s next.

And she’s still meeting with Meg weekly. Because even when things improve, the value of a coach doesn’t disappear. Weekly coaching sessions are a dedicated space to think.

She trusts her insight, her experience, and her ability to push her when needed. She’s her sounding board—not just in crisis, but in growth, in change, and in strategy.

Mid-Year Check-In: A Simple Step to Reenergize Your Team and Drive Results

Many small businesses are feeling the pressure this year—slower sales, tighter budgets, and rising costs. When growth is tough, it's easy to focus only on the numbers. But often, the key to turning things around starts with your people.

Now is the perfect time to pause and have a mid-year performance conversation with your team. These don’t have to be formal reviews or complicated processes. In fact, a simple conversation can go a long way in helping employees feel supported, realign priorities, and get motivated for the second half of the year.

Over the past four years, we’ve had the privilege of partnering with the Arthritis Foundation to support and develop their most valuable asset—their people.

Our work together began with a focus on performance management training and has since grown into a robust, multi-faceted partnership that includes custom leadership development programs, executive coaching, and high-impact summit experiences.