In the wake of layoffs, leaders can rebuild trust by engaging openly with their teams. When a company undergoes layoffs, the impact reverberates well beyond the employees who were let go. Remaining team members often experience shock, uncertainty, and even survivor’s guilt, questioning why they stayed while others did not. This turmoil can erode trust and morale across the organization. Research shows that after layoffs, employee confidence in the company drops sharply, one study found overall company confidence fell 17%, belief in career growth declined 12%, and trust in leadership plummeted by 10%. Such a “trust deficit” can quietly undermine productivity and retention if not addressed.
For HR professionals, CISOs, business owners, and enterprise leaders alike, the message is clear: rebuilding trust must be a top priority in the aftermath of layoffs. Without proactive effort to restore credibility and security, organizations risk a lingering atmosphere of fear and disengagement. This article provides an educational, step-by-step look at how to rebuild workplace trust and effectively onboard new employees after layoffs, ensuring a smoother recovery for your team and company culture.
Layoffs don’t end with the exit interviews, their ripple effects on those left behind can be profound. Employee trust “cracks,” and psychological safety disappears as survivors worry about their own job security. Even high performers may withdraw or lose confidence if they feel the organization is no longer stable or transparent. When layoffs occur, two fundamental types of trust are broken: cognitive trust, employees’ belief that leaders will keep promises and follow through, and affective trust, the emotional connection that creates psychological safety in teams. In other words, people lose both faith in leadership’s reliability and the sense of security and connection with their workplace.
Surviving employees often grapple with “survivor’s guilt”, asking, “Why was I spared while my colleagues were not?”. They may also find their workloads suddenly heavier as responsibilities get redistributed, adding to stress and resentment. New uncertainties cloud the workplace: staff wonder if more cuts are coming and whether they can trust leadership’s assurances. As Wharton professor Peter Cappelli notes, both internal staff and future hires will question “are these layoffs the end of the cuts or the beginning?”. If unanswered, this question can hang like a dark cloud, breeding fear that drives remaining talent out the door in search of more secure employment.
The cultural fallout is tangible. Team dynamics change overnight, and the usual camaraderie may give way to anxiety or cynicism. Employees might hesitate to take risks or make decisions, eroding innovation and productivity. In short, morale takes a hit, and with it, so does organizational performance. It’s a challenging situation, but not an insurmountable one. By first acknowledging this trust deficit and its causes, leaders set the stage for meaningful recovery.
It may be tempting to “move forward” quickly after layoffs, but rushing to hire new employees without rebuilding trust is a mistake. Trust is the foundation of an engaged, high-performing workforce. If existing team members are disengaged or skeptical of leadership, their cynicism can spill over to newcomers. Worse, unresolved distrust can manifest in counterproductive behaviors, diminished effort, lack of collaboration, or even security risks such as data withholding or malicious compliance, concerns that chief information security officers (CISOs) and other leaders take seriously. In essence, a workplace low on trust can’t fully harness the contributions of either its veteran employees or its fresh hires.
For new hires, joining a company after a layoff can be daunting. Imagine walking into a workplace where desks are conspicuously empty and the mood is tense. If not managed well, new employees may quickly sense the anxiety and become wary of their own future at the company. They will likely have pointed questions about the layoffs during interviews or employee onboarding, ‘What caused it? Could it happen again? How secure is this role?’. If leaders haven’t rebuilt internal trust or a clear narrative, the answers new hires hear (or the silence they perceive) might give them pause. This can undermine your onboarding efforts and even lead to quick turnover if the new talent doesn’t feel confident in the organization’s stability.
On the flip side, rebuilding trust before and during onboarding pays dividends. A workplace that has openly addressed the layoff aftermath and shown commitment to its people will project a sense of stability to candidates and new employees. Re-established trust fosters a supportive environment where current staff are more likely to welcome and help integrate newcomers, rather than viewing them with suspicion or bitterness. Additionally, demonstrating care for employees, for instance, by treating departed staff with respect and valuing those who remain, sends a powerful message that “people are not just disposable resources”, which can bolster your employer brand. In short, trust is contagious: by healing the breach with existing employees, you create a healthier culture for anyone new stepping through the door.
The first step in rebuilding trust is to focus on those who lived through the layoffs, your remaining team. These employees are the bedrock of your company’s recovery; they need to feel valued, heard, and secure before you ask them to help onboard others. Experts call this “re-recruiting” your survivors. What does that entail? It means actively convincing your current employees to recommit to the organization by demonstrating that they matter. Here are key strategies to support and re-engage your existing staff:
By taking these steps, you address the immediate emotional and practical needs of your workforce. Leaders who prioritize culture recovery in this way find their organizations bounce back faster. Moreover, a trust-filled environment will set a far sturdier stage for any newcomers about to join.
Communication deserves special focus in the trust-rebuilding process. How leaders communicate during and after layoffs can make or break the team’s morale. In many layoff debacles, companies have been criticized for cold, impersonal methods (such as mass emails or sudden system lockouts) that leave remaining staff feeling dehumanized. To avoid this pitfall and rebuild goodwill, organizations should commit to clear, compassionate, and frequent communication going forward.
1. Establish a Clear Narrative: Work with your leadership team to craft a truthful narrative about why the layoffs occurred and where the company is headed now. Employees shouldn’t be left filling in the blanks with rumors. Explain the business reasons candidly (e.g. “Due to an X% revenue drop, we had to reduce costs”) and, importantly, explain why you believe the future will be more stable (new strategies, markets, investments, etc.). Being open about whether the restructuring is over or if uncertainties remain will help rebuild credibility, even if the news isn’t all positive. Remember, “everything is more credible when it comes from the top”, so having a C-level executive (CEO, HR head, etc.) deliver these messages can further reassure staff that their concerns are heard at the highest level.
2. Two-Way Dialogue: Communication after layoffs shouldn’t be a one-off top-down announcement, it must be an ongoing conversation. Encourage questions at town halls; set up an anonymous Q&A if people are afraid to speak up. Leaders should also practice active listening. When employees voice fears (for example, “Will there be another layoff?” or “How will our workload be sustainable?”), respond honestly. Even if the answer is uncertain, saying “I don’t know, but I will keep you updated on what we learn” is better for trust than evasion. In smaller group meetings or one-on-ones, managers can solicit feedback on what the team needs. This open-door approach, literally and figuratively, sends the signal that leadership is available and willing to hear hard truths. It can help lessen rumors and restore some trust by reducing the “unknowns” employees are fretting over.
3. Communicate Stability and Change: Striking a balance in your messaging is key. On one hand, emphasize what is not changing, the core mission, key projects, or values that remain intact. This provides anchors of stability. On the other hand, communicate any changes in strategy, structure, or expectations clearly so people aren’t caught off guard. For example, if teams are being restructured or priorities shifted post-layoff, outline that roadmap so employees can orient themselves. When staff know what to expect, it diminishes anxiety and builds cognitive trust (they can rely on leadership to keep them informed). As part of onboarding materials for new hires, consider including a frank summary of the recent changes and current company direction, so they too have context and clarity from day one.
4. Show Humanness and Compassion: Above all, communicate with empathy. Layoffs are deeply personal to those affected; showing that leaders understand this human impact is essential. Simple gestures like leaders personally addressing the team with genuine remorse for the difficulties, or sharing their own commitment to making things better, can resonate. Humanize the tone, for instance, avoid phrasing like “resource action” or “downsizing exercise” and speak plainly about people and feelings. Some companies hold casual coffee chats or “ask me anything” sessions where executives drop corporate formalities and speak heart-to-heart with employees. This can go a long way in rebuilding affective trust, as employees begin to see leaders as partners rather than distant authority figures. As one benefits firm advises, “Layoffs may be over in a day, but their impact can linger for months. Addressing the emotional and cultural fallout with intention is critical.” In practice, that means keeping the communication channels open and compassionate long after the pink slips are handed out.
By consistently communicating with transparency and empathy, you demonstrate respect for your employees’ intelligence and emotions. Over time, this consistency in word and deed will help employees start to believe in leadership again, a belief that is absolutely vital as you bring new people into the organization.
With groundwork laid in supporting your current team, you can turn attention to the new hires who will join your post-layoff organization. Onboarding is always a critical process for employee success and retention, but after layoffs it carries extra weight. It’s not just about filling out paperwork and training on job duties, it’s about integrating new colleagues into a workforce that may still be healing. Here are strategies to ensure onboarding after layoffs is handled with care and sets the stage for rebuilding trust:
1. Be Prepared to Answer Tough Questions: New hires will likely come in with heightened concerns if they know the company recently downsized. During recruitment and onboarding, be prepared for questions about job security, company stability, and what happened. Answer with honesty and context. For example, you might explain, “Last quarter we had an unexpected downturn which led to a difficult reduction, but here’s what we’ve done since to stabilize and why we’re hiring for growth now.” Candidates and new employees will appreciate candor over generic assurances. As hiring picks up after layoffs, companies should be ready to address whether the cuts are truly over. Being transparent about this (to the extent you can be) will help build credibility with new team members from the very start.
2. Acknowledge the Elephant in the Room: It can be helpful to address the layoff context proactively in your onboarding process or early team meetings. This doesn’t mean you need to dwell on the past, but a brief acknowledgment like, “You may have heard we went through a restructuring recently; we’re focused on moving forward and we’re excited to have you on board to be part of our next chapter,” can set the tone. It shows new hires that the company isn’t trying to hide what happened. Moreover, it opens the door for them to ask questions or express any anxieties. The key is to make sure they don’t feel like they’ve joined a sinking ship, rather, they are joining a resilient team that is rebuilding. Framing it as a turnaround story or a new phase of growth (if true) can even inspire newcomers, as long as that message is grounded in reality.
3. Integrate New Hires with the Existing Team: After layoffs, existing employees might be wary of newcomers, and vice versa. Overcome this by designing onboarding activities that foster connection and teamwork. For instance, assign experienced team members as onboarding buddies or mentors to each new hire. This not only helps transfer knowledge, but also signals to veterans that they are trusted to help build the future. It gives survivors a stake in integrating the new folks. Team-building meetings or project kick-offs that involve both new and old team members can break the initial ice. Encourage your current employees to share their experiences and “institutional memory” with the newcomers, it can be cathartic for them and informative for the new hires. By actively reconnecting people, you begin to dissolve any “us vs. them” sentiment between those who went through the layoff and those arriving after. Leaders should reinforce that everyone on the team now has a role in writing the next chapter.
4. Emphasize Culture and Values From Day One: If trust and morale took a hit, it’s even more important to communicate your company’s core values during onboarding, and how you are living those values post-layoff. Reiterate commitments to things like teamwork, innovation, integrity, and respect for people. Share any steps the company has taken to support employees during the transition (for example, extended severance for those laid off, new work-life balance initiatives for those remaining, etc.). These actions demonstrate that the company practices its values, building credibility. Make sure new hires understand the concept of psychological safety in your workplace, that questions are welcomed, and mistakes can be discussed openly. If you’ve implemented changes to prevent future issues (say, more transparent financial updates or an open-door policy with HR), highlight those in onboarding. This signals to new employees that leadership learns and adapts, furthering their confidence that they’ve joined a principled organization.
5. Avoid the “Bait and Switch” With Roles: One trust-killer to be vigilant about is the “bait and switch” scenario. This happens when someone is hired for a role, then a layoff or reorg suddenly forces them to take on a very different job than what they signed up for. If a new hire’s responsibilities have grown or changed due to the post-layoff environment, discuss it with them candidly. Don’t just pile on unrelated tasks without explanation. As leadership expert Claire Lew explains, hiring someone and then dramatically changing their role in short order undermines their ability to build trust, “because it hadn’t fully established it in the first place.”. The new employee may feel misled and insecure. To prevent this, set realistic job expectations upfront. If the team is leaner and everyone has to wear multiple hats, make that clear in the job description or early in onboarding. And if changes do occur, acknowledge them and provide support (additional training, adjusted goals, etc.) so the new hire feels set up to succeed rather than set up to fail. Following through on what was promised (or transparently renegotiating when necessary) is part of maintaining cognitive trust with your newest employees.
6. Provide Ample Training and Support: After a layoff, remaining employees are likely busy and stretched thin. It can be challenging for them to train newcomers, yet throwing new hires into the deep end is a recipe for frustration on all sides. Plan for a thorough onboarding schedule that doesn’t rely solely on overburdened team members to get the new person up to speed. Utilize documented training materials, and consider spreading onboarding duties among multiple people to lighten the load. Recognize that onboarding may take longer than usual in a post-layoff environment as everyone adjusts; be patient and make sure new hires have the resources and time to learn. If possible, slightly reduce current employees’ workload for the first couple of weeks of a new hire’s tenure so they can assist with training without feeling further overwhelmed. By investing time in properly onboarding new team members, you demonstrate commitment to their success and to not overloading your existing staff, actions that build trust on both sides.
7. Signal a Fresh Start and Optimism: Finally, use onboarding as an opportunity to inject fresh energy and optimism into the workplace. Celebrating the addition of new team members can boost the morale of the whole team by signaling growth and forward momentum. Simple gestures like a welcome lunch (even if virtual), a team-wide email introducing the new hire with warm encouragement, or small welcome gifts can create positive vibes. It reminds everyone that the company is rebuilding and that better days are ahead. However, balance optimism with realism, avoid veering into “toxic positivity.” Acknowledge the challenges that led here, then emphasize what’s exciting about the future. Transform the challenge into an opportunity, as one tech leader did with her framework after layoffs, reframing tough constraints as chances for innovation and resilience. When new hires see a hopeful outlook backed by concrete plans, they, and the veteran team, can start to genuinely feel that the organization is turning the page.
By approaching onboarding with these strategies, you not only set your new employees up for success but also reinforce a culture of trust and support that everyone in the company will benefit from.
In the course of hiring after layoffs, one option leaders might consider is rehiring former employees, often called “boomerang” employees. These are people who were laid off but are now willing and available to return. Rehiring from this group can, under the right circumstances, be a powerful trust-building move. Since they already know the company and were valued (they left due to restructuring, not performance), bringing them back can send a message of loyalty to all employees. In fact, doing so “demonstrate[s] to the rest of your staff that you’re loyal to current and past team members alike and will do what you can to help them in tough situations,” which in turn can boost trust and morale across the board. It shows that the layoff was truly a result of tough circumstances, not a personal rejection, and that the company is eager to make things right when possible.
However, rehiring must be approached carefully. First, gauge the individual’s feelings: do they harbor any resentment about being let go? A disgruntled rehire could negatively affect morale if they return with bitterness. It’s important to have an open conversation during the re-interview process to ensure they’re on board with the company’s direction and ready to fully re-engage. Second, consider whether the role and team dynamics have significantly changed. A returning employee might bring deep knowledge, but if the business has evolved, make sure they receive an updated onboarding as if they were a new hire (covering new policies, team members, or systems in place). Also, be transparent with your current team about why this person is returning, framing it positively (e.g. “We’re thrilled to have Alice back; her experience will help us accelerate Project X”).
If done well, boomerang hiring can be a win-win: the team regains a proven contributor, and other employees see a tangible example of the company valuing its people. But it should be one piece of a broader strategy, not a shortcut to avoid rebuilding trust in other ways. Whether or not you pursue boomerang hires, maintaining fairness in your hiring practices post-layoff (treating former employees and new applicants equally, and being mindful of legal considerations if refilling eliminated roles) will further reinforce a culture of trust and integrity.
Rebuilding trust after layoffs is neither quick nor easy, but it is possible, and it’s essential for any organization hoping to regain its footing. By caring for the employees you have, communicating with honesty, and onboarding newcomers thoughtfully, you transform a period of crisis into the start of a new chapter built on hard-earned confidence. Remember that trust is built day by day through consistent actions: honoring commitments, listening to concerns, and treating people with respect. Leadership must champion this effort, but it truly takes everyone’s involvement, HR guiding the process, managers fostering safety in teams, executives leading transparently, and colleagues supporting one another.
The silver lining of such challenging times is that they force organizations to become more deliberate about culture and values. Companies that invest in rebuilding trust will emerge more resilient and cohesive, with employees who feel not only secure but also engaged and empowered to contribute their best. For HR professionals and enterprise leaders, the work lies in bridging the gap between surviving and thriving. By following the strategies outlined above, you can help ensure that your next wave of hires steps into a workplace where trust has been rebuilt brick by brick, a workplace ready to move forward together, stronger than before.
Rebuilding trust ensures existing employees feel secure and engaged, creating a positive environment for new hires. Without it, cynicism and low morale can spill over to newcomers, harming integration and retention.
Leaders can acknowledge the emotional impact, encourage open dialogue, communicate honestly, adjust workloads, and invest in professional growth. These actions help employees feel valued and re-engaged.
Be transparent about the company’s recent history, address concerns directly, integrate newcomers with existing staff, emphasize values, set realistic expectations, and provide thorough training and support.
Yes, boomerang employees can bring valuable experience and send a message of loyalty. However, it’s important to ensure they’re willing to re-engage positively and receive updated onboarding if the company has changed.
They should share a clear, honest narrative about the layoffs, keep dialogue two-way, balance messages of stability with changes, and show compassion through personal, human-centered communication.
