Despite forecasts of economic optimism—driven by falling interest rates, which have reduced financing costs, and a slowing rate of inflation, which may help stabilize expenses—many companies in Europe have announced significant job cuts. These include Bosch (5500 FTE), Thyssen Krupp (11.000 by 2030), Schaeffler (4700 FTE), Ford Motor (4000 FTE by 2027) etc.. These cuts, announced in 2024, are set to unfold this year and beyond. As a company CEO facing job cuts in 2025, your priorities must now focus on building trust, setting a clear vision, and fostering stability and direction for your company.
CEOs must prioritize purpose-driven communication that inspires and empowers others to focus on what truly matters, motivating them to push beyond existing limits. This will allow CEOs to reassure shareholders of their commitment to navigating challenges while delivering on long-term goals. Recognize the employees’ potential concerns due to market volatility or company-specific challenges, like job cuts and reinforce your role as a proactive and strategic leader steering the company toward stability and growth. This situation of planned job cuts emphasizes the critical role of well-planned and well-thought-out empathic CEO communication in fostering inspiration, clarity, and future collective growth.
The first step is the hardest: Good preparation is “half the battle”.
Understanding the company’s current state entirely is crucial. It starts with reviewing key performance metrics, financials, and strategic plans. This will help you identify the reasons behind the job cuts and communicate them effectively. Meet the leadership teams to gather insights on pressing issues and ongoing projects. Consistent wording and messaging in your conversations are key.
Deliver a straightforward, honest message and communicate regularly.
Acknowledge the challenges related to the job cuts openly and explain the “why” behind them. Transparency builds credibility. Reassure employees of your goal to maintain the company’s long-term stability and how their contributions are vital to recovery and growth. Meet employees at all levels, listen to their concerns, and acknowledge their emotions. Empathy First: Acknowledge the difficulty of the situation and express gratitude for their resilience. Be visible and approachable; this fosters trust during uncertainty.
- Acknowledge Challenges: Start by addressing the current challenge (job cuts) directly, whether they stem from market conditions, internal transitions, or external crises. Transparency is key to maintaining trust.
- Set a Vision: Provide a clear and hopeful direction, emphasizing innovation, improvement, and growth opportunities. Show how each team’s work aligns with achieving the company’s goals.
- Reinforce the Vision: Reiterate the company’s long-term vision and how it aligns with shareholder interests.
- Present Achievements: Briefly highlight notable achievements from the previous year, demonstrating resilience and progress. Do this regularly.
- Commitment: Reassure them of your commitment to transparency and a fair, respectful process during transitions.
- Focus on Those Staying: Recognize their contributions and feedback and provide support to help them remain motivated. Offer training or career development opportunities to help employees feel valued and secure.
Efficient CEO communication with diversified teams: Use a variety of communication channels.
Foster intergenerational communication. Consider generational differences and adopt inclusive strategies to ensure smoother communication across all age groups. Do not only focus on written communication – use additional communication channels:
Employees have emotions and fears. Walk the Floor.
Spend time in various departments, on the spot or virtually, to observe operations and understand employee sentiment. With this, you demonstrate approachability and accessibility. Face-to-face interactions foster trust. CEOs break down hierarchical barriers by engaging directly with employees, encouraging open dialogue and building a culture of transparency.
Leverage Digital Channels
- CEO Video Messages: Record and distribute a message sharing your priorities and optimism for the year.
- Dedicated Shareholder Portal: Ask your communications team to create an online space for regular updates, reports, and shareholder interaction.
- Social Media Presence: Use your LinkedIn profile for direct communication, focusing on thought leadership and updates. Don’t delegate this kind of post to your communications department to post with the company profile. You are the face and voice of the company.