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How To Build a Stronger Team After Layoffs (CEO Magazine)

Published February, 2024

Dr. Carylynn Kemp Larson examines the critical role of leadership in the aftermath of layoffs, highlighting how organizations can either falter or move forward stronger depending on how they support their people. While layoffs are often necessary for business sustainability, she emphasizes that their true impact extends beyond those who leave, affecting morale, trust, and performance across the entire workforce.

She argues that the period following layoffs is often overlooked, yet it is when leadership matters most. As employees navigate increased workloads, uncertainty, and emotional strain, leaders must step up with clear communication, empathy, and a renewed focus on organizational purpose. Rather than relying on traditional leadership development approaches, this moment calls for more targeted, practical support that helps leaders align teams, rebuild trust, and execute effectively.

Dr. Larson underscores that investing in leadership development during times of disruption is not optional, but essential. Organizations that equip their leaders to communicate consistently, engage their teams, and reinforce the company’s mission are better positioned to recover, retain talent, and drive meaningful progress. Ultimately, she positions post-layoff leadership as a defining factor in whether organizations merely survive—or successfully transform.

Key Takeaways

  • Layoffs impact the entire organization—not just those who leave.
    Remaining employees often face increased pressure, uncertainty, and emotional strain.

  • The post-layoff period is when leadership matters most.
    How leaders show up after layoffs determines whether teams disengage or move forward with focus and resilience.

  • Communication is critical to rebuilding trust.
    Clear, consistent, and empathetic dialogue helps employees regain confidence in leadership and the organization’s direction.

  • Leaders must reinforce purpose and direction.
    Employees need to understand not just what is changing, but why—and what it means for the future.

  • Leadership development needs to shift in times of disruption.
    The focus moves from self-awareness to execution, alignment, and team performance.

  • Engaged leaders create more engaged teams.
    Supporting leaders helps reduce stress, improve communication, and strengthen overall team dynamics.

  • Cutting leadership development during downturns is a mistake.
    Investing in leaders during challenging times is essential for recovery and long-term success.

  • Strong leadership determines whether layoffs lead to decline or transformation.
    Organizations that support their leaders are better positioned to rebuild, retain talent, and grow.

Authored by Carylynn Kemp Larson,