Many organizations, especially federal agencies, are facing unprecedented upheaval as they implement large-scale workforce reductions. For technology leaders (many navigating this process for the first time), layoffs represent a particularly challenging leadership test that cannot be executed without significant trade-offs. Despite optimistic claims about “doing more with less,” the reality is that organizations must initially accept making do with less instead, even redefining the scope of the mission. Layoffs should remain a last resort, implemented only after exhausting all other cost-saving measures, as they extract a heavy toll: lost institutional knowledge, organizational instability, and diminished capabilities that may take years to rebuild. Many organizations ultimately find themselves rehiring at increased costs to fill critical gaps.

When workforce reductions become unavoidable or uncontrollable (as is the case for many US federal agencies currently), technology leaders must balance strategic necessity with genuine compassion, implementing changes thoughtfully to both safeguard critical capabilities and respect the human impact on their teams. To do this, technology leaders must:

  • Prioritize reversible cost reductions to protect organizational adaptivity. Workforce reductions represent one of the most irreversible budgetary decisions an organization can make. The loss of institutional knowledge and relationships can create repercussions that reverberate for years. In today’s dynamic environment, organizational adaptability depends on retaining talent: people who understand your mission, know the functional dependencies, and possess relevant skill sets. When navigating budgetary pressures, first explore opportunities in other areas — device spending, software licenses, service provider contracts, and telecommunications costs. Only after exhausting these options should workforce reductions be considered.
  • Communicate with clarity and compassion. Coordinate all messaging with agency leadership to prevent rumors and anxiety. Be transparent about the process and timeline, sharing information promptly. Managers new to workforce reductions need detailed guidance and support. Provide comprehensive communication toolkits, including talking points, FAQs, and guidance for difficult conversations. Schedule practice sessions for delivering tough news. Acknowledge the emotional impact on those affected while maintaining boundaries. Keep your management team close with frequent check-ins, creating safe spaces for concerns and guidance.
  • Deliberately rebuild organizational trust. Workforce reductions impact organizational culture, causing survivor’s guilt, workload anxiety, and stability concerns. Acknowledge these feelings openly. Hold town halls to communicate priorities and listen to concerns. Support frontline managers with resources. Clearly document changed expectations and deprioritized projects. Collaborate with stakeholders to reset service agreements and timelines. Celebrate small wins to rebuild momentum.
  • Define your sphere of control and influence. Focus on areas where you can make a difference. Sphere of control refers to the areas where you have direct authority and can make decisions or changes including tasks, projects, and responsibilities that you can manage independently. Sphere of influence encompasses areas where you can affect outcomes indirectly through relationships, persuasion, and collaboration that involves working with others to achieve goals, even if you don’t have direct control over the processes. Understanding each involves recognizing where you can take direct action versus where you need to leverage your influence to drive change. Not only will it give you grounding on what to focus on, it can give clarity to the teams you manage.
  • If necessary, scope down the mission. If the cuts that you are experiencing are vast, you might not be navigating the dilemma of determining how to do the same with less. You’ll likely need to revisit your mission, redefining the business and IT capabilities that you must support. Collaborate with proactive team members who are ready to tackle challenges, and work closely with team members who are willing to roll up their sleeves. You need leaders who will step in and step up rather than dwell on the instability and upheaval, but note that execution will still require skills and resources.

For further guidance on navigating these challenging times, please reach out to your account team to schedule a guidance session.