Here we go again—another round of mass layoffs and salary increase holds, another spreadsheet victory celebrated with shattered lives.
It’s become so routine in corporate life that shareholder value consistently trumps human value, and most leaders barely flinch.
What we’ve normalised is not strategy—it’s destruction.
When organisations miss arbitrary projections, the go-to fix has become cutting jobs and holding salary increases. Never mind the individuals behind those roles—their families, their futures, or their contributions.
What matters is “balancing the books.” But what leaders fail to realise is this: every layoff or hold on a salary increase, is not just a financial event, it’s a communication. And what it communicates to the rest of the workforce is catastrophic.
The message is simple: “This is not a meritocracy. Your effort, loyalty, or value doesn’t protect you.” The moment people see colleagues let go en masse, fear permeates the culture.
A Leadership IQ study found that 74% of employees report reduced productivity after layoffs and holds on salary increases, while 69% say quality also drops.
Why? Because fear is incompatible with trust, initiative, and innovation.
In cultures of fear, no one admits mistakes. No one asks for help. Vulnerability—the foundation of learning, collaboration, and growth—evaporates.
Everyone walks around lying about what they know, how they feel, and how safe they are. It’s not just inefficient—it’s soul-destroying.
People fake it, hide, and protect themselves. And organisations pay the price with disengagement and lost performance. Gallup reports that only 23% of employees globally are engaged at work—a damning reflection of environments that prioritise survival over purpose.
The damage runs deeper for emerging talent. Millennials and Gen Z are already battling heightened anxiety, disconnection, and burnout. Deloitte’s 2023 Global Survey found 46% of Gen Zs and 39% of Millennials feel stressed most of the time. And now we’re asking them to build their futures in fear-based workplaces that silence growth, crush creativity, and prize output over wellbeing.
Empathy is not a luxury. It’s a leadership essential.
If your team isn’t thriving, maybe it’s not them—it’s the environment you’ve created.
We need to stop asking, “How do I extract more from my people?” and start asking, “How do I help them be at their natural best?”
When people feel safe, valued, and supported, performance follows. Trust builds. Cultures transform. And suddenly, layoffs aren’t necessary—not because projections are always met, but because we’ve built resilient, loyal, and empowered teams that weather challenges together.
That’s leadership. And that’s the future we should be creating.
