As the international development sector continues to contract under the pressure of funding cuts, many organisations face difficult decisions about workforce reductions. While these choices may be financially imperative, they carry a significant human cost, and most immediately for those let go.

In our previous post, we explored the impact of layoffs on remaining staff members and how leaders can support them. In this follow-up, we turn our attention to those directly affected by termination. For leaders navigating this volatile landscape, understanding the experience of laid-off staff is essential for ethical leadership and organisational resilience.

This post draws on past research and our expertise in organisational development to illuminate the layoff experience, offering practical guidance on how leaders can support staff through these challenging transitions.

Inside the Experience of Those Let Go

Losing a job can be a deeply disruptive and disorienting experience, unsettling a person’s sense of identity, stability, and direction. In international development and humanitarian aid organisations, where professional purpose is closely tied to personal values, the impact can feel especially acute. Recent posts from professionals laid off in the sector underscore the emotional toll of this transition. For many, work served as more than a job. It was a source of meaning, belonging, identity, and impact.

In organsiational behaviour and management research, laid-off employees are often referred to as “victims”, a term that reflects the psychological, behavioural, and career-related consequences of being let go. Far from a temporary disruption, job loss is a multi-layered and deeply personal experience, with long-lasting effects for both individuals and organisations.

Beyond financial strain, studies have connected job loss to increased stress, anxiety, depression, physical health issues, and strain in close relationships. Recent research also found a strong link between unemployment and loneliness.

The impact of a layoff doesn’t stop once someone secures a new role. The research shows that being laid off can leave lasting scars, including reduced future earnings and eroded trust in employers. Victims may carry feelings of uncertainty, scepticism, and disengagement into their next organisation. They may also struggle with lowered motivation to work, commitment to their organisation, and trust in leadership.

While people cope with job loss in different ways, leaders can play a pivotal role in shaping how that recovery unfolds. As we discussed in our previous post, the treatment of laid-off staff also sends a message, not just to those departing, but to those who remain, too. It signals the organisation’s values, shapes team culture, and reflects the broader relationship between leadership and staff.

Supporting victims through layoffs is both a matter of integrity and maintaining organisational resilience. While layoffs are never easy, thoughtful leadership here can ease the transition and minimise lasting harm. This is especially critical now, as the international development job market grows increasingly competitive and uncertain.

Drawing on the research, the next section explores the specific ways leaders can support affected staff during this challenging period.

How Leaders Can Effectively Support Layoff Victims

There are several ways leaders can help staff through the experience of job loss and find new opportunities. The following steps are key to addressing their immediate needs and easing the transition.

1. Communicate the layoff decisions with openness, honesty, and empathy.

Helping staff process the impact of a layoff begins with open and extensive communication. It’s not just about delivering the decision, it’s about taking time to explain the wider context, whether that’s funding constraints, program shifts, or strategic changes. Clarifying that the decision isn’t a reflection of individual performance can go a long way in preserving trust and dignity.

Where possible, hold these conversations one-on-one. This allows space for staff to ask questions, express concerns, and explore what types of support might be most meaningful during the transition.

2. Offer emotional and financial support.

As explored, job loss often bringing stress, anxiety, and a loss of control. Offering access to personal and financial counselling can make a difference. These services help staff members process the experience, manage uncertainty, and begin to rebuild confidence in a time of disruption.

3. Support re-employment through outplacement services.

Helping staff take the next step in their careers is a meaningful way to show care and uphold organisational values. Beyond severance pay, organisations can also offer non-wage benefits to support victims. One valuable option is outplacement support, which may include job search assistance, resume development, interview coaching, skills training, and networking guidance. These services can help victims get back on their feet and move forward. Given the competitiveness and instability of the job market in international development, providing structured support for re-employment reflects a commitment to people, even in difficult times.

In this post, we’ve explored the experience of those directly impacted by layoffs and how to support them. At ODRL, we work closely with organisational leaders to manage the impact of layoffs to sustain organisational culture, resilience, and performance. We help leaders understand the human and organisational impact of layoffs and respond with research-driven approaches.

If your organisation is preparing for, going through, or recovering from layoffs and you want to explore how to support affected staff, you can reach us here or via email at enquiries@odrl.org.

References

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Collins, T. (2025, May 19). ‘We have to try lifting ourselves’: USAID workers fired months ago are still scrambling for jobs. USA Today. https://eu.usatoday.com/story/news/politics/2025/05/19/usaid-workers-next-job/83332416007/

Gabriel, Y., Gray, D. E., & Goregaokar, H. (2013). Job loss and its aftermath among managers and professionals: wounded, fragmented and flexible. Work, Employment & Society, 27(1), 56-72. https://doi.org/10.1177/0950017012460326 (Original work published 2013)

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Morrish, N., & Medina-Lara, A. (2021). Does unemployment lead to greater levels of loneliness? A systematic review. Social Science & Medicine, 287, 114339. https://doi.org/10.1016/j.socscimed.2021.114339

OECD. (2025). Cuts in official development assistance: OECD projections for 2025 and the near term. https://www.oecd.org/en/publications/cuts-in-official-development-assistance_8c530629-en.html

Rand, B. (2023, October 3). Layoffs can be bad business: 5 strategies to consider before cutting staff. Harvard Business School. https://www.library.hbs.edu/working-knowledge/layoffs-can-be-bad-business-five-strategies-to-consider-before-cutting-staff

Solove, E., Fisher, G. G., & Kraiger, K. (2015). Coping with job loss and reemployment: A two-wave study. Journal of Business and Pychology, 30(3). 529-541. https://doi.org/10.1007/s10869-014-9380-7