6 Ways to Handle a RIF with Appropriate Compassion

When it comes to a Reduction in Force (RIF) — or any degree of layoffs — the finger almost always points back to Finance.

You’ve assessed the numbers, performance and outlook. And while someone else might ultimately make the final decision in a RIF, you have the data to stand behind that decision. And you likely have to stand next to the decision-maker when the life-altering news is dropped.

RIFs on the Rise

And that’s happening more and more these days: Visa eliminated 7% of its workforce. Shopify and Tesla each let go 10% of their staff. Realtor Re/Max slashed 17% of its workforce. Vimeo laid off 7% of its staff. Microsoft dropped 1% of its team in a realignment.

But the RIF and smaller-scale layoffs don’t stop at the big-name companies. Nearly 60% of companies say they’d likely lay off employees in 2026, according to a Resume.org survey. Ten percent implemented a hiring freeze and about 40% have cut back on hiring.

Regardless of the reason — many of the above-mentioned companies cited AI — or the percentage of employees affected by a RIF, they’re still people. And they have lives, families, needs and aspirations that will be negatively affected on short notice.

“Employees who are told their jobs are no longer sustainable are put in a position of helplessness,” says Dave Fisch, former CEO at The Ladders. “What is possibly their sole source of financial stability is being taken away from them by the company to whom they’ve dedicated many hours of their lives.”

So how Finance leaders and their colleagues in the C-Suite manage a RIF can make all the difference in how affected employees react, respond and rebound from it.

Here are six ways to handle a RIF effectively and with compassion.

1. Be Conscious of Space, Time

Whether your RIF affects two people or 200, tell them in person. Delivering bad news — for most employees, this is the worst news — via email, text, video, etc., borders on heartless. You don’t want displaced employees to remember their executive team that way.

Consider where you have this conversation, too. Try to do it in an office or conference room to give employees privacy and comfort to absorb what’s being said and how it affects them. This also gives them space to respond without judgment. Naturally, there are challenges to in-person terminations with fully remote employees. So you might try a video call.

In contrast to Visa’s recent RIF, when the mass layoff news went out in a memo to 34,000 employees before the 2,600 affected knew their jobs were gone, David Grossman suggests a much more appropriate approach.

“There is a harder, yet more human, version of this that works better. Brief managers first,” says Grossman, a leadership communication expert and author of The Heart Work of Modern Leadership. “Equip them to have real conversations. Let people hear the worst news of their year from someone who knows their name and can sit with them in it.”

2. Be Pointed, Sensitive

How you and your colleagues present the message matters – perhaps more than the actual message. Employees often remember how you made them feel more than what you say. Tone and word choice matter.

“In that conversation, you need to get straight to the point,” says Fisch.

If you beat around the bush, or use a build-up that tries to justify the decision and soften the blow, you’ll likely do the opposite. You just give them more time to imagine the worst (which the layoff may not actually be the worst possible scenario to some people).

Speak calmly and evenly, using plain language. Avoid using jargon like “right-sizing” or “back-burnered.” Be transparent about the decision-making process.

3. Be Prepared

When you tell employees they’re part of a RIF, give them time to think about what they’ve heard, and form questions and voice concerns.

“Given the seriousness of the situation, the employee will likely have questions, so it is critical that thoughtful answers are prepared,” says Fisch.

Work with HR to gather all you can before meeting with employees about timelines, separation and/or unemployment benefits, exit interviews, off-boarding procedures, job placement assistance, referrals, emotional and/or financial support – and beyond.

4. Offer Support

All employees – not just those who are let go – need support. Beyond delivering the news and the facts behind it, you’ll want to partner with HR to point employees to emotional, moral and professional support.

“When a company undergoes a large-scale reduction in headcount, it can be a traumatic experience for the employees asked to leave the organization,” says Joseph Ifiegbu, Technology Chair for the Society for People Analytics, in the report Data Driven Layoffs: How to use Data and Empathy to Navigate Difficult Layoff Scenarios, which he co-authored with his research team.

“Knowing what to do next, where to go, and how to find a new job can be challenging. Additionally, there can be a loss of morale amongst the remaining employees,” says Ifiegbu.

Next level: Have financial counselors on hand to walk employees through financial and professional logistics.

5. Help Employees Move On

Beyond the initial support at the time of layoffs, try to offer additional resources and support to help employees bounce back in their careers and move on successfully.

“Support is critical after layoffs. Employees should not feel cut off from help and support after layoffs,” Ifiegbu says in the report. That might include career counseling or directing them to career help such as local career centers, such as state-operated career assistance centers, mature worker programs or retraining opportunities in other industries.

6. Reconsider Benefits and Communicate

In almost all situations, layoffs mean the business is struggling. That will likely impact benefits and bonuses.

So let remaining employees know early that you’ll be reexamining and possibly realigning plans to meet your new business realities. Nothing may change, but at least make employees understand that it’s a possibility so they aren’t blindsided. Again.