The current scenario paints a bleak picture colored with uncertainty. However difficult these mass job cuts are not all that sudden. 2022 was tumultuous economically. Companies were already battling with the continued aftermath of COVID-19 when they were faced with the added pressure created by the geopolitical tensions; which disrupted supply chains, fueling inflation, while the world stared at a recession.

As we move deeper into the year, more layoffs are predicted along with steadily decelerating growth.

Moving forward, but not without looking back

Economic downturns are not a new phenomenon. It has been over a decade since the 2008-2009 financial crisis, but I would like to believe that what we learned from the past helped us emerge stronger and more resilient as a collective. I strongly think that leaders who show restraint, are able to maintain composure, and most importantly put their people first, will put their organization in a better position to survive these tough terrains. In such times of uncertainty, leaders must continuously strive to foster safety in the minds of the people they lead and provide them with meaningful work, and an overall positive work experience. Even when they have to implement difficult decisions.

While crises often call for urgent and drastic measures, it is imperative to act with empathy; without turning frantic. It calls for leaders to do the following:

• Be mindful

  Communication is essential to the health of every organization, but this becomes especially important during uncertain times like these. People need to know where they stand, what the road ahead looks like, and how their leaders intend to support them through this period. As a leader, it is your duty to help your employees understand the 'why’ behind your seemingly harsh decisions. In the midst of a downturn, employees look to leaders for assurance, and they expect it often. Leaders should be increasingly communicative, accessible, and visible, to meet these expectations. Being straightforward and transparent will be critical.
  
  Amid company-wide layoffs, when everyone is caught up with employees who have been let go, it is also vital to be mindful of the ones left behind. Leaders have to recognize that this is a very difficult time for those who remain with the organization. What are the changes that need to be made in light of the recent job cuts and how will they impact the lives of existing employees?



• Seize the moment

  The inevitable impact of the recession can be better managed if leaders prepare for it. We have learned from past global meltdowns that downturns favor well-prepared organizations. For business leaders, staying ahead of the curve will assist in avoiding the difficult alternative—being forced to react hastily in a crisis. While it is true that all companies must manage costs during a financial/ economic downturn, extensive cost-cutting may not be the right and only solution for every organization. Instead, leaders and organizations need to fundamentally rethink their approach to investing in employees (strengthening employee wellness, learning and development, and training initiatives rather than making them the prime target of budget cuts), identifying short-term and long-term projects that will aid organizational growth, and executing proactive M&A strategies, if required.

Now is the time to adapt and act

This is not the time to wait and watch, but to observe and act with speed and thought. The right plan to move forward rests on understanding where a company stands, both financially and strategically. The leaders and board members must together agree upon a road map by answering key questions like, where do you see the organization on the other side of the crisis? Defining a desired end will help leaders identify where to invest or divest as well as what areas to focus on.