Laying off employees is one of the hardest decisions a founder or HR leader will face. This guide covers the five key principles of a well-managed layoff process, practical guidance on how to notify employees, and country-specific legal procedures across France, the UK, Spain, and Germany.

You've done everything you could do to avoid it but you now have to face layoffs/downsizing. You'll need courage throughout the process, because although you probably already know the following, what counts is not knowledge but know-how, and therefore the actual execution of the plan. As Ben Horowitz would say: care about people, product and profit, in that order! People will never forget how you treated them.

What Are the Key Principles of a Responsible Layoff Process?

5 KEY principles, not more!

• Timing is critical. Don't delay to avoid words leaking / managers lying to teams. TIMING IS KEY. Start as soon as possible between decision and execution. The sequence is the road to success to have the highest efficiency. For this, it is better to have a good preparation before pulling the trigger (except trial periods).
• Be honest about the reason. Come clean about why you are laying off. Ex: "We have to lose good people because we failed…, we couldn't…" DON'T USE EXCUSES ON PERFORMANCE OR SOMETHING ELSE: You need to be trusted and to show that you stand still in front of your decision and with absolute trust in your plan forward.
• Train managers to deliver the message consistently. Train managers (CEO and HR) to relay the message, when talking to people, avoid one-to-many notifications and notify people as privately as possible:
• • They must understand what happened in the company and be able to talk about it clearly. You need everyone to speak with one voice!
  • They must communicate gently to their team that the situation is non negotiable
  • They must know and have all elements about the severance: the package, the benefits, the garden leave...
• The CEO must be visible. The CEO has to address the company as she/he is the CEO (all hands quickly schedule, email sent to the whole team...). The CEO has to be visible, present with the teams, and be everywhere, as well as the remaining C-suite.

How Should You Decide Who to Let Go During a Downsizing?

And concretely how and who when downsizing?

Prepare a budget for departures & be generous if it accelerates departures (delays will be a cost for you ultimately!). Do it once: If you're going to take on the massive emotional and cultural impact of letting people go, be sure to create sufficient savings (so to "cut deep") so you and the remaining team have the cash required to get through to the other side of the crisis and survive. Doing multiple rounds of layoffs demoralizes your team and erodes any trust and confidence they have in you.

Identify the persons who will leave

• Identify the high salaries you'd better let go, and even if the organization is large, you need to let go people or it can create inertia
• Identify the people still in trial period
• Identify the rest of the team to be released
• Pending on the country you will lay off, you will reflect on:
• • Redundancy plans
  • Terminations
  • Contractual redundancy (RC in France) or Collective contractual redundancy (RCC in France)
  • Transactions...

Identify the persons who will stay

At the same time: Identify the key people of the Orga which shall continue the journey (the future core team you will rely on) and speak with them to retain them. They must project themselves in the journey. You need them, don't forget them!!!!!

Protect communication with your employee representative (be careful on being 100% transparent as info can leak as well from the employee representatives and it would be unproductive for the company & its employees and create panic, so share info but don't share too much ahead: remember principal 1 above : do everything on a timely manner!)

How Do You Notify an Employee That They Are Being Made Redundant?

How to actually tell someone they are being laid off. The do's

Logistics

• At least two company representatives, ideally one of whom is a trained HR professional, to avoid he-said/she-said scenarios and to maximize legal protections.
• Avoid sending a calendar invitation for a 1-1 with an HR representative. Send another invite to your HR in parallel. Make sure those invitations are private in the calendars.
• Avoid back-to-back meetings in the same room, change meeting rooms.
• Be prepared and rehearse a lot: It's very smart to have a script prepared in front of you + all severance related information. Trust us, you need to rehearse your script!

What to say?

Go straight to the point. "I have some news to share with you" or "It's not going to be a nice discussion as..." "The leadership team and I have had to make some difficult decisions in order to try and save our business, and as a part of that, we are eliminating your role at the company and you are being laid off." You aren't there to have your mind changed, you aren't giving false hope. You are there to deliver information as clearly, and compassionately, as possible.

And then, just wait. The person will need a moment to process. Silences are tough. They may be upset. They may be embarrassed. They may be angry. It may be all of those things at once. But let them process. Just listen to them and acknowledge them. Demonstrate empathy but stand behind the company's decisions.

If they have logistics questions: you have all the severance package and policy information. You will follow up with emails, official letters and communications. If they have questions about their performance, the company and other people: "How many people impacted? What if I work harder? Can I take a pay cut?" Stick to the script, repeat the talking points, and listen. It's not recommended to share about other people, you are there to talk about them not others.

You can follow up with "I know this news is hard to hear. It's normal to have questions that come to you later that aren't top of mind right now, and I want to make sure you reach out to me or our HR team when you have them. We want to be available to you as you have questions and do whatever we can to help you." You can also say "I know this is a lot to take in, but we will be here to accompany & support you all the way, if you'd like."

If appropriate, make clear that you or someone at the company would be willing to be a reference for them when they are considering job opportunities.

How to actually tell someone they are being laid off. The don'ts

• Do not make it about you: don't say how hard it is for you to give them this news. You still have a job, they do not.
• Do not make jokes or be lighthearted. This is not a lighthearted thing. Even if you're nervous and trying to diffuse the tension. Even if it's an awkward silence. Just be quiet and listen. Leave room for the person to process the news if necessary.
• Do not tell them they will be fine. Do not tell them they will find a better job. You don't know if that is true.
• Do not be prescriptive about their future.
• Do not blame others: Do not blame the market. Do not blame your board or investors. Just own it.
• Do not ask them "Are you okay?" because that phrasing is about making you feel better for delivering terrible news and doesn't support the employee. You can definitely ask if there's something they need. If you are genuinely concerned for their safety and wellbeing, or believe they are a danger to themselves or others, you need to tell them that's what you are observing, and then you need to be prepared to call someone close to them (and tell them you are doing that) and/or emergency services.

Announcing this kind of news is never easy. While we have shared some general guidance on what should and should not be done, the wording will always need to be tailored because every layoff situation is unique. For that reason, providing a pre-written script could do more harm than good.

Company property

Depending on your IT security policies, you may decide to leave company property to your employees as part of their severance package. Be clear that laptops, badges... are still company property and will need to be returned at a future date.

Please note that when legally possible, we recommend the date of notification be the last day the employee comes to the office (= immediate garden leave) and has access to most workplace resources. That doesn't mean they need to leave the payroll system that day (for instance, to continue benefits into the next months). It's generally better for people because it makes it clear that there is a new normal that starts right now. Obviously, this depends on the role itself and the context.

We advise you to work with a lawyer and your HR professional on this process.

If you require further information on the procedures applicable in each country, you will find below a selection of trustworthy resources and service providers that can support you in navigating this complex and sensitive process.

By country, here is a proposition of how to put things in place concretely.

Country-Specific Redundancy Procedures in Europe

France

Your potential lawyers/partners:

• An'Ka Avocats - Laure Marquès.
• We pulp

To know more about standard procedures: termination of employment in France is governed by the Labour Code and shaped by a combination of statutory rules, case law, and collective agreements. There are three main legal ways to end an employment contract:

Licenciement pour motif personnel (personal reasons)

• Must be based on a real and serious cause (e.g. misconduct, underperformance, incapacity),
• Requires a formal process: summons to a preliminary meeting, written notice, and waiting period,
• Notice period varies based on seniority and applicable collective agreement,
• Severance pay required unless in cases of gross or serious misconduct.

Licenciement économique (economic redundancy)

• Must be based on genuine economic grounds (e.g. reorganisation, financial difficulties),
• Involves strict procedural steps, including consultation with employee representatives (if applicable),
• Priority reemployment rules and redeployment efforts are mandatory,
• Notice and severance rules apply as with personal dismissal.

Rupture conventionnelle (mutual agreement termination)

• Initiated jointly by employer and employee,
• Must follow a formal process including a signed agreement and mandatory approval by labour authorities (DREETS),
• Entitles employee to statutory severance pay and unemployment benefits,
• Cannot be used in place of dismissal to avoid legal obligations.

Cost of termination

For employees on permanent contracts (CDI) with at least 8 months of service, statutory severance is mandatory (unless dismissed for gross or serious misconduct).

Legal minimum:

• 1/4 of one month's salary per year of service for the first 10 years,
• 1/3 of one month's salary per year from the 11th year onward
• Reference salary: the most favourable of either the last 3 months or last 12 months of gross pay (including bonuses)

Additional costs may include:

• Compensation for unused paid leave,
• Contractual or collectively agreed severance packages,
• Costs related to legal formalities and HR administration

United Kingdom

Your potential lawyers/partners:

• Founders Law: Craig and Cullen.

To know more about standard procedures:

• Eligibility to claim unfair dismissal
• Dismiss staff: general procedure

NB: Before 2 years of employment anniversary, in the UK, it is generally possible to dismiss an employee without giving a reason if they've been employed for less than two years. This is because the right to claim unfair dismissal typically applies only after two years of continuous service. However, exceptions apply, particularly in cases of discrimination or automatically unfair dismissal (e.g. whistleblowing, asserting statutory rights, parental leave).

To know more about standard procedures: in the UK, the main ways to end an employment contract depend on the reason for termination.

Dismissal for personal reasons (conduct or capability)

• Must follow a fair disciplinary or performance process
• No severance required
• Notice or pay in lieu applies (1 to 12 weeks)
• Extra costs: unused holiday pay, legal fees, risk of compensation if mishandled

Redundancy (economic reasons)

• Must be based on genuine business need
• Requires consultation and fair selection
• Redundancy pay required after 2 years: capped at £19,290
• Notice or pay in lieu applies
• For 20+ redundancies: collective consultation or risk up to 90 days' pay per employee

Mutual termination (settlement agreement)

• Agreed by both parties
• Must be in writing with legal advice
• Includes a negotiated payout
• No mandatory severance

If you need more information here is a well made guide on the subject

Spain

In Europe, here could be your partner:

• Founders Law: Craig and Cullen
• Gremicat

To know more about standard procedures: these are the three main ways to end an employment contract in Spain, with some of the key legal requirements to keep in mind.

Despido disciplinario (disciplinary)

• No notice required,
• No severance unless declared unfair,
• If unfair: 33 days/year (or 45 days pre-2012), max 24 months.

Despido objetivo (objective)

• 15 days' notice required,
• Severance: 20 days' salary per year worked (max 12 months),
• Severance must be paid on termination date.

Acuerdo mutuo (mutual agreement)

• No minimum notice period required,
• Severance is negotiable (not mandatory),
• Recommended to document terms clearly in writing,
• Employee may still claim unemployment if conditions are met.

If you want to learn more about dismissals and termination of employment in Spain, we recommend this expert guide made by CMS. You can also find useful information in this government guide

Germany

To know more about standard procedures:

• Protection Against Dismissal Act (KSchG)
• German Civil Code:
• • §622 BGB - notice periods for termination
  • §626 BGB - Termination without notice for good cause

Terminating employment in Germany can be time-consuming and complex, as the government places strong emphasis on protecting employees against unfair dismissal through the Protection Against Dismissal Act (KSchG). While there is no official step-by-step procedure published by the government, you can consult the full text of the KSchG, as well as relevant sections of the German Civil Code (BGB), to understand the applicable legal framework.

Here are the standard procedures:

Ordentliche Kündigung (ordinary dismissal)

• Notice required (starts at 4 weeks, increases with seniority),
• No statutory severance, but often negotiated to avoid legal disputes,
• Must be socially justified if protection applies (company >10 employees, tenure >6 months),
• Employee can challenge within 3 weeks.

Außerordentliche Kündigung (extraordinary dismissal)

• No notice period,
• Only allowed in cases of serious misconduct,
• Must be issued within 2 weeks of becoming aware of the issue,
• Works council must be consulted before termination.

Aufhebungsvertrag (mutual termination)

• No notice required,
• Terms (severance, end date) are negotiable,
• Must be clearly documented and signed by both parties,
• Not subject to dismissal protection but can affect unemployment benefits if not properly handled.

Searching through legal texts can often be a hassle. It's usually much easier to rely on legal guides provided by law firms, which explain your options and key obligations more clearly. Here are three trustworthy sources that will help you understand the main ways to end a contract, the potential costs, and the legal timelines to respect:

• Pinsent Masons
• L&E
• CMS

Frequently Asked Questions: Layoff Process Best Practices in Europe

Q: How much notice do you need to give employees when making redundancies in Europe?
A: Notice periods vary by country and contract type. In Germany, notice starts at four weeks and increases with seniority. In France, notice depends on seniority and the applicable collective agreement. In the UK, statutory notice ranges from one to twelve weeks. In Spain, objective dismissals require fifteen days' notice, while disciplinary dismissals require none.

Q: Can you carry out layoffs in stages across multiple rounds?
A: Multiple rounds of layoffs are strongly discouraged. Conducting a single, well-planned reduction is preferable because repeated rounds erode employee trust, demoralise the remaining team, and can ultimately cost more than a decisive, one-time restructure.

Q: What is the difference between redundancy and dismissal for performance in European employment law?
A: Redundancy (or economic dismissal) is driven by genuine business need -- such as financial difficulties or organisational restructuring -- and typically requires consultation, notice, and severance pay. Dismissal for performance or misconduct is based on individual conduct or capability, follows a disciplinary process, and may not require severance pay depending on the country and circumstances.

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