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.

At People Architects, we know running a small business is exciting, but it also comes with big challenges, especially when it comes to managing your team. That’s why we offer fractional HR support to help growing businesses like yours navigate People issues without the high cost of a full-time HR team. We’re not just another HR provider—we run on EOS (Entrepreneurial Operating System) and use Ninety.io to keep our operations running smoothly. 

That means we understand how to help EOS-driven companies tackle People challenges in a way that supports growth and efficiency.

What is EOS?

EOS, or the Entrepreneurial Operating System, is a simple yet powerful framework designed to help businesses get clear on their vision, stay focused on priorities, and run more efficiently. With six key components—Vision, People, Data, Issues, Process, and Traction—EOS helps companies align their teams, improve accountability, and scale with confidence.

How We Use EOS to Run Our Business

We use EOS every day to stay focused on what matters most—growing our business and helping others do the same. EOS principles guide how we set goals (Rocks), solve challenges, and keep our team aligned. With Ninety.io, we run efficient meetings, track progress, and make sure nothing falls through the cracks. This means we practice what we preach, and we’re ready to help your business do the same.

Helping EOS-Driven Companies Solve People Challenges

If your business runs on EOS, you already know how important it is to have the right people in the right seats. But knowing which People-related Rocks to tackle first can be overwhelming. That’s where we come in. We help EOS companies with:

• Managing Top Talent: Keeping your best employees engaged, motivated, and performing at their best.

• Increasing Employee Morale: Creating a workplace culture where people love to work and stay.

• Hiring for Growth:Finding and keeping the right talent to support your company’s expansion.

3 Ways We Work with Other EOS Businesses

We get it—your time is best spent growing your business, not getting bogged down in HR issues. That’s why we partner with EOS-driven companies to make People challenges easier to manage. We help by:

1. Completing Key Rocks: Need to improve employee engagement, set up better HR processes, or build stronger leadership? We’ll help you get it done.

2. Solving Complex HR Issues: Whether it’s compliance, employee relations, or workforce planning, we provide the expertise you need.

3. Sitting in the People Seat: If you need HR leadership but aren’t ready for a full-time hire, we can step in and drive your People strategy while you focus on growing your business.

Leverage Fractional HR for Smart Growth

“Growing a business is tough, and hiring a full-time HR team isn’t always the best move. With fractional HR support, you get expert guidance, help tackling your toughest People issues, and support completing your key Rocks—all at a fraction of the cost of hiring in-house,’ Meg Mayhugh, Founder of People Architects shares.

Let’s work together to make sure you have the right team in place to achieve your vision and fuel your company’s success.