The University of Technology Sydney (UTS) is in the spotlight – not for academic achievements, but for a restructuring plan that’s left many staff anxious and distressed. As part of a $100 million Operational Sustainability Initiative (OSI), UTS is preparing for 400 redundancies.
But it’s not just the scale of job cuts that’s raising eyebrows. A recent survey by the National Tertiary Education Union (NTEU) revealed that 35% of UTS staff reported very high levels of psychological distress. One-third of the workforce is facing significant mental health challenges, as uncertainty and fear ripple through the university.
Dr. Hossai Gul, a respected UTS academic, expressed what many feel but few openly say during such crises: “There are kind and compassionate ways to do redundancies… people shouldn’t become unwell.“
Sadly, this situation is not unique. Across industries and continents, organizations are resorting to layoffs as they grapple with financial uncertainty, technological disruption, and shifting market realities. But how these layoffs are managed can leave scars long after the balance sheets stabilize.
When Layoffs Are Handled Poorly, Everyone Pays the Price
Job loss is not merely a financial blow; it strikes at an individual’s sense of purpose, identity, and stability. Research consistently links poorly handled layoffs to:
- Declines in mental health among both affected employees and surviving staff
- Loss of trust in leadership
- Damage to organizational reputation
- Increased attrition among top talent
- Productivity drops due to survivor guilt and disengagement
At UTS, SafeWork NSW is now investigating potential psychological harm to staff – a sobering reminder that organizations cannot afford to treat layoffs as purely administrative exercises.
There Is a Way to Let People Go with Dignity
While no amount of process can eliminate the pain of job loss, organizations can – and must-approach layoffs with empathy, transparency, and responsibility. Here are some globally recognized best practices for conducting layoffs that respect both the dignity of individuals and the long-term health of the organization:
1. Be Honest from the Start, People Deserve the Tuth
Uncertainty breeds anxiety. Employees often sense trouble long before official announcements, and rumors can be more damaging than facts. Proactive, honest communication – about financial challenges, strategic decisions, and possible workforce impacts – helps employees prepare mentally and emotionally.
Example: In 2023, Airbnb’s layoff memo from CEO Brian Chesky was widely praised for its transparency and compassion. It clearly outlined the business reasons for layoffs, the process, and support mechanisms in place.
2. Listen to Your People, Before Making Big Decisions
One of the biggest criticisms at UTS was the lack of meaningful consultation with staff and unions. Involving employees early – through town halls, anonymous surveys, or union discussions – not only improves decision-making but shows respect for people’s voices.
“35% of staff reported very high levels of psychological distress.”
– NTEU Survey finding
3. Don’t Just Say Goodbye, Offer Real Support
A humane layoff process includes tangible support, such as:
-
Generous severance packages
-
Career transition assistance
-
Access to mental health resources
-
Continued health insurance, where possible
-
Outplacement services and job search support
These aren’t just perks – they demonstrate that the organization values people beyond their immediate roles.
4. These Conversations Are Hard, Make Sure Leaders Are Ready
The conversation informing an employee they are being let go is possibly the hardest moment of their professional life. Leaders must be trained to conduct these discussions with empathy, patience, and respect. Avoid legalese or robotic language; focus on humanity.
5. Don’t Forget the People Who Stay
After layoffs, “survivor’s guilt” and fear often grip remaining employees. Leaders must:
-
Rebuild trust through honest communication
-
Reaffirm organizational vision and stability
-
Recognize increased workloads and morale dips
-
Offer counseling or mental health support for all staff
Neglecting the emotional well-being of remaining employees risks further attrition and disengagement.
Layoffs Shape Employer Brand, For Better or Worse
In today’s hyper-connected world, how an organization handles layoffs becomes public knowledge. Stories from ex-employees, media coverage, and social platforms shape perceptions among future talent, customers, and investors.
UTS’s experience, unfortunately, serves as a cautionary tale—not just about financial restructuring, but about the moral obligation employers have towards their people.
“SafeWork NSW is now investigating potential psychological harm to staff.”
People Remember How You Made Them Feel, Especially on the Way Out
Dr. Alison Barnes of the NTEU described the UTS job cuts as fueling a “broader trend of anxiety across the university sector.” But this anxiety extends far beyond academia. It’s a reflection of how uncertainty and fear can engulf entire industries when organizations forget that behind every workforce metric lies a human being.
As layoffs continue across sectors – from tech giants to universities – it’s time to reframe the conversation. Layoffs may sometimes be unavoidable. But how they are conducted can either deepen wounds or uphold dignity.
Ultimately, treating layoffs as a human, not just a business, decision isn’t just the right thing to do – it’s the smart thing to do for organizational resilience, reputation, and future success.
Because in the end, numbers recover – but trust, once broken, is far harder to rebuild.
