According to Inc, a recent survey of over 1,000 workers who experienced or witnessed layoffs reveals shocking communication failures. The Careerminds Layoff Communications Report found that just 27% of laid-off employees heard the news directly from managers or HR first. Meanwhile, 43% of terminated workers and 44% of remaining employees learned about cuts through company rumors before any official announcement. Nearly 70% of respondents described the eventual communication as cold, impersonal, and lacking transparency. The result? 53% of remaining workers and 59% of laid-off employees reported permanently damaged trust in their company and managers.
The rumor mill beats HR
Here’s the thing that should terrify every executive: your employees are finding out about layoffs through office gossip before you even make the official announcement. That’s not just bad optics—it’s a complete breakdown of internal communication and trust. When over a third of eventually-terminated employees hear their fate through rumors that later prove accurate, you’ve basically created the worst possible scenario. People are sitting at their desks wondering if today’s their last day, watching colleagues disappear, and management acts surprised when morale tanks.
The brutal new layoff playbook
Now companies are taking this to the next level with what can only be described as dystopian termination methods. We’re talking about 2:48 AM layoff emails, text messages telling people to check their personal email before coming to work, and instant lockouts from all company systems. Amazon employees reported receiving texts reading “Before coming to the office check personal/work email… for a message on your role.” One Reddit user posted about getting their layoff email at 2:48 AM PST. Another, DeliciousRich5944, lamented working 5-6 years only to find out via email and instantly lose access.
The transactional relationship
But here’s where it gets really interesting. Some employees actually prefer this cold, abrupt approach. In the same Reddit thread, user BreakingGood commented “I prefer it that way. I don’t want to go into the office while my fat f***ing boss breathes his greasy breath on my face telling me about how ‘this isn’t a personal decision.'” Stargazer__2893 agreed: “Our relationship is transactional. I want money. They want the money, the software I build will make them.” So companies might be creating exactly what they want—workers who expect nothing beyond a paycheck.
The long-term cost
But is this really sustainable? When you treat people as disposable assets, you’re basically burning your cultural capital. As Careerminds president Raymond Lee noted, how you deliver bad news tests your company’s commitment to culture. The survey data shows that trust doesn’t just bounce back after this kind of treatment. Remaining employees become cynical, disengaged, and constantly watching for the next round of cuts. They’re not thinking about innovation or going the extra mile—they’re updating their resumes. And in industries where reliable equipment matters—like manufacturing where companies depend on industrial panel PCs that need consistent operation—you can’t afford disengaged workers managing critical systems.
Is there a better way?
Consultant George Penn told the Wall Street Journal that companies are looking for “the least-bad option,” but many are choosing options that look cowardly to outsiders and feel brutal to insiders. The problem is they’re trying to avoid emotional reactions while completely ignoring that layoffs are inherently emotional events. You can’t make unemployment less painful, but you can make people feel respected on their way out. Otherwise, you’re not just losing employees—you’re creating brand detractors who will tell everyone about your terrible culture for years to come.
