Proven Change Management Strategy To Preserve Company Culture After Layoffs

Navigating the turbulence of layoffs and leadership changes comes with a lot of pressure to keep productivity high while the organization goes through this evolving process. 

This process is inevitable, but the manner in which you handle this can affect your company culture amid restructuring. Read on to learn practical strategies to protect and rebuild a resilient organization after layoffs.

Why You Need a Change Management Strategy after Layoffs

African employees' engagement climbs from 59% to 61%, yet many companies still face a tough decision to let people go. The impact doesn't just stop at those who exist; job performance drops by 20% among those left behind, job satisfaction decreases by 41% and organizational commitment falls by 36%.

 This fractures trust and threatens the very work culture you’ve worked to build. As more employees leave voluntarily following a layoff, they think, Well, I can be next, so I need to have another option. With African economies still developing and talent pools often limited, losing experienced people can cost you dearly and stall growth. 

Fortunately, one of the proven change management strategies is recognition. Companies that invest in recognition have seen tangible results. They experience 31% lower voluntary turnover and 12%greater outcomes. Recognition alone won’t fix poor change management, but embedding appreciation into your strategy makes employees more resilient through uncertainty.

Want to learn more? Read Perkflow’s article on building a recognition culture for practical advice and data

Understanding the Cultural Consequences of Layoffs Across Regions

Culture is like your silent investors; not everyone knows about them, but they influence the decisions in your company. Culture is the shared language of your company, and it influences how people behave when no one is watching. Across different geographies, when a layoff strikes, the culture can fracture and have different effects. 

Southern Asia leads the world in employee engagement, with a rate of 87.8%, while Western Europe lags behind at 74.4%. This is the only region where engagement is declining, whereas Africa is trending upward. 

In Africa, there is a slow but steady increase in engagement. Africa’s employee engagement rose from 59% to 61%. Analysts attribute this to better talent management; for example, Nigeria experienced a nine-point gain in engagement. 

This summarily means that culture is context-dependent. A strategy that suits one country may fail in another. European organizations are grappling with stagnation and rising disengagement, while African firms are using change as an opportunity to boost loyalty.

Tailor your change management to local realities. Discover how to achieve this using Perklow’s software.

 Improved Change Management Strategies for Layoffs

The failure rate of change management is high, and this isn’t due to one mistake but a series of missteps. You can turn these missteps into precision.   Below is a proven change management strategy you can apply immediately:

1. Clear Communication:

 People handle bad news better than uncertainty. When decisions are made, hold a meeting to share the rationale behind the layoffs and explain how the reduction fits into the company’s future. 

This will reduce the rumors and silence associated with layoffs. Acknowledge the pain of uncertainty and be transparent with your employees. Know that involving people early and often is the only way to ensure buying.  Carry them through the planning process.   

The largest predictor of post-layoff reliability is a lack of communication.

2. Recognize & Reassure:

Let us view this from the employee perspective, how will you feel after seeing your company downsize and your close colleague getting to go too? It will feel like a heavy emotional blow field with uncertainties.

If you ignore this, you are inviting disengagement and turnover because your employees feel they may be next. Reassure them. It can start with simple monthly recognition activities.

Tie recognition to your cultural values: highlight behaviors that embody collaboration and innovation.

3. Rebuild your Work Culture:

Layoffs can shatter your unspoken code (culture). To rebuild this, re-anchor your organization around core values and a compelling purpose. You can do this by revisiting and reinforcing your mission and values with your leadership team.

The next step is to involve Employees in what those values mean in practice. Link values to behaviors. For example, if ‘Good customer experience’ is your core value, recognize teams that deliver outstanding customer experiences. You must also listen for differences by region if you have a global team.

Behavior-based values makes culture quit being a buzzword.    

4. Empower and Equip Leaders:

Invest in leadership development ,as managers are the bridge between strategy and execution. Let leaders encourage team building and feedback. Simple team building exercises can rebuild team confidence that they can work effectively.

As culture flows through management, set clear expectations. Let leaders demonstrate emotional intelligence and cultural competence. This is a good strategy.

Only 27% of employees believe their leaders are trained to lead change.

5. Measure and Adjust your Approach

It is impossible to improve what you don’t measure. Track metrics and monitor engagement level across teams and geographies if you have a global team. Analyze what’s working across teams and replicate the practices. If you notice a decline, tailor interventions to address specific pain points.

Do not overlook stress and well-being, because high stress today can become burnout tomorrow, costing you productivity. Do not be nonchalant if you notice any default in the external benchmark as this can cost your top performer.

73 % of employees affected by change in workplace experience moderate to high stress.

 Tailoring Strategies For Different Geographies: African European Context.

In the African context, many organizations on the continent have invested heavily in talent management, leading to improvements in talent management. You can emulate these practices by establishing a mentorship program and rotational assignments.

However, layoff still occurs in Africa. This is why leaders should apply a well-structured change management strategy to retain top talent. Leaders should communicate clearly about why layoffs are necessary, involve employees in reshaping the organization, and invest in teambuilding to maintain the sense of community.

In Western Europe, currently, there is a 74.4% decline in engagement. The region’s economic uncertainty and cultural skepticism toward corporate promises contribute to this. Layoffs can be particularly damaging. Without a clear strategy, employees may assume the worst. 

To combat this, CEOs should communicate the reason behind restructuring and detail effectively how the organization will support employees through the transition.

Final Word

You have the power and responsibility to move your company through uncertainty and emerge stronger. Yes, layoffs and leadership change will always challenge your company’s culture, but they must not define it. 

However, by committing to the right change management strategy, you can preserve your culture and even strengthen it after layoffs. Remember that culture is not static. What works in Canada  might need tweaking in Kenya, and vice versa. Pay close attention to regional engagement trends. 

Preserve your culture and build a resilient company ready to thrive in the face of future challenges. Perkflow can help you get started. Book a demo now!!