Checklist for mission-driven managers navigating layoffs with compassion & equity

By Viva Asmelash and Michael Gregor

If you’ve worked with us, you know that we always aim to infuse our Liberation Labs values—compassion, clarity, and joy—into everything we do.

Advising leaders during company restructuring and layoffs isn’t any different.

While so much hangs in the balance for many, both personally and professionally, we’re working with clients to center compassion. It’s one key action any of us can take right now. 

When it comes to our values statements, here’s how we choose to view compassion in action—

We honor our innate potential as humans to learn and evolve, and believe we learn best when cared for. We express care frequently and tend to the health of the whole—with a particular focus on the most marginalized among us.

In that spirit, here’s the structured checklist we share with managers in mission-driven organizations who aim to navigate layoffs in a way that prioritizes compassion, equity, and alignment with values.

1. Ground in Values Before Action

• Revisit your organization’s mission, values, and equity commitments

• Define what “compassion” and “equity” mean in this process

• Identify potential unintended impacts on marginalized staff and communities/customers served

• Ensure leadership alignment on messaging and approach

2. Plan with Transparency & Fairness

• Develop clear, equity-centered criteria for layoff decisions (role-based, not person-based where possible)

• Conduct an equity impact review (e.g., check if decisions disproportionately affect staff by race, gender, income level, caregiving status, immigration status, or other identities important to your work)

• Involve people with equity analysis skills in reviewing criteria and decisions

• Prepare communication in plain, compassionate language (no jargon or vague language)

• Notice what dysfunction exists in the organization, then consider what you could solve ASAP to help make this transition better for employees (tending to organizational dysfunction along the way will put you in a better collective position to handle layoffs and budget cuts)

3. Communicate with Care

• Deliver news in person (or video call if remote), never by email alone

• Share the decision with honesty about the “why” — financial realities, strategic shifts — while avoiding placing blame

• Acknowledge the individual’s contributions and impact on the mission

• Allow time for the staff member to ask questions, process, and respond

• Provide written follow-up with details on logistics and resources

4. Provide Support & Dignity

• Offer fair severance, extended health benefits, or transition support (if possible)

• Connect staff with networks, job boards, or career coaching resources

• Provide letters of recommendation proactively

• Allow space for staff to say goodbye to colleagues with dignity

5. Care for the Team that Remains

• Acknowledge the emotional impact of layoffs on those still in the organization

• Reiterate your commitment to mission and values, and be transparent about what comes next

• Hold space for grieving, questions, and rebuilding trust

• Avoid “toxic positivity” — be real about challenges, while offering hope and vision for the future

• Be open to ideas from staff about how to make the transition as healthy as possible

6. Care for Yourself as a Manager

• Recognize the emotional toll on you as a leader

• Seek peer support, coaching, or counseling if needed

• Reflect on lessons learned and take action to improve organizational resilience

7. Follow Up & Reflect

• Check in with laid-off staff after a few weeks if appropriate, offering references or resources

• Debrief the process with leadership: What aligned with values? What could be improved? What will inform our future decision-making?

Navigating layoffs while staying true to your mission and values isn't just about following a checklist—it's about recognizing that how we treat people during our most challenging moments reveals who we truly are as organizations. The decisions you make and the care you show during this difficult time will be remembered long after the immediate crisis has passed. By centering compassion, maintaining transparency, and committing to equity throughout this process, you're not only honoring the dignity of every person affected but also strengthening the foundation upon which your organization can rebuild and thrive. Remember that even in the midst of necessary difficult decisions, you have the power to model the values-driven leadership that workers desperately need. The path forward may be uncertain, but walking it with integrity and care for all involved is always the right choice.