The heart-smart way to lay off

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November 30, 2025 | 10:35am

This year, many local industries trimmed teams to adjust to changing market demands. Manufacturing, administrative support and service firms saw the largest contractions, leaving around two million Filipinos navigating unemployment. And while some companies continue to hire, others had to streamline—reminding us that behind every statistic is a person with real concerns and worries. This is why letting go the heart-smart way matters more than ever.

Workforce reduction is one of the most uncomfortable responsibilities any management team will have to face. There is never a convenient or perfect time to do so. But even in its difficulty, it can be carried out with respect, dignity and deep compassion.

For anyone going through retrenchment or redundancy, the loss goes beyond income. People  not only lose a financial anchor  but a sense of routine, belonging and identity. This is why terminations should balance legal care with genuine human warmth.

Follow the law, honor the person

Philippine labor laws don’t simply outline procedures, they are meant to protect workers’ rights and soften the blow of a job loss. Before beginning any layoff process, management must understand the basics:

• Authorized causes include redundancy and retrenchment to prevent losses or business closure
• The action must be done in good faith and based on fair and reasonable selection criteria
• A written notice must be given at least 30 days before effectivity, both to the employee and to the Department of Labor and Employment (DOLE)
• Separation pay for redundancy or retrenchment is at least one month’s pay or one-half month’s pay per year of service, whichever is higher, plus accrued benefits
• For business closure due to proven financial losses, separation pay is not required
• Layoffs must be the last resort—not done for arbitrary, retaliatory or discriminatory reasons

Yet even with legal steps in place, many managers forget that following the law is the minimum. What truly matters is how we treat people through the process.

Lead with clarity and kindness

Nobody wants bad news wrapped in jargon. A compassionate off-boarding conversation is honest but never harsh. Choose a quiet room. Speak calmly. Explain clearly that the decision is based on company circumstances, not the employee’s shortcomings. Allow space for questions, silence and even emotions.

Sometimes, the smallest gestures soften the hardest moments: offering tissue or a glass of water, giving them time to breathe or simply saying, “I’m truly sorry this had to happen.”  Simple human kindness can steady someone whose world suddenly feels uncertain.

Respect Their Journey, Not Just Their Tenure

Work families often feel like real families, so losing a job can feel like losing a piece of oneself. This is where empathy is needed most.

Invite the employee to reflect on milestones they’re proud of.  Thank them for contributions supported by facts and specific circumstances,  so the gratitude feels real. People rarely remember what you said, but they’ll always remember how you made them feel.

Offer support beyond the exit

This is where leaders can shift from compliant to truly caring. Practical support can ease the fear of the unknown:

• Provide recommendation letters or referrals
• Share job leads or job-hunting tips
• Give clear instructions on final pay, benefits and documents
• Offer flexibility for interviews and if possible, a transition period of three months, since job hunting isn’t easy

Even directing them to online resources or connecting them with a recruitment contact can make the next step feel less daunting.

Create closure with compassion

Every person deserves to leave with dignity. A simple lunch, a small farewell token, a warm handshake, or even a quiet prayer for new opportunities and blessings helps create gentle closure.

Endings are tender moments. Speak the truth that while one chapter closes, a new one can begin with lessons, strength and clarity carried forward. Be honest but always kind.

Ultimately, leadership shines not only in how we mentor people, but in how we walk with them through difficult goodbyes. Letting someone go is never just an administrative act, it’s also about guiding a person through a transition they never wanted, with as much grace and courage possible.

When done with a heart, even a hard moment can hold a quiet kind of hope to steady a hurting spirit.