A client called me in tears last week.
The market had hit their business hard. After months of trying everything else, they had to make redundancies. Four people. A family business that had never let anyone go in over a decade.
"We gave them everything, Sel. Flexible hours when they needed it. Extra time off. We covered for them when they struggled. We were so generous, probably too generous."
Then came the part that broke them: "They turned on us. Said we never cared about people, only money. Called us heartless. Everything we'd done for them - forgotten."
The Cost You Never See
What those employees didn't know:
The owners had already cut their own salaries by 40%. They'd cancelled a family vacation they'd been planning for years. They'd postponed essential home repairs. They'd been losing sleep for weeks, trying everything to avoid this exact moment.
While their employees accused them of not caring about people, they were crying at their kitchen table, wondering how they'd failed the people they'd tried so hard to protect.
The Business Reality No One Wants to Face
Sometimes good businesses have to make difficult decisions to survive. Market downturns don't care about your company values or how much you've invested in your people.
You can be the most caring, generous employer in the world, and still have to choose between letting some people go or losing everyone when the business fails.
But employees don't see the financial statements. They don't see the sleepless nights. They don't see the personal sacrifices. They just see the decision.
When Generosity Becomes a Weakness
Here's what my client realized: They'd been so generous for so long that their team had no concept of business constraints. No understanding that employment isn't guaranteed regardless of market conditions. No appreciation for the risks business owners take to provide those jobs in the first place.
When reality hit, their employees couldn't handle it. Instead of gratitude for years of flexibility and support, there was anger. Instead of understanding, there was accusation.
The Coaching That Changed Everything
I told them what I tell every client going through this: "People can only see their own perspective. You can't control how they interpret your decisions or what they choose to believe about your motivations."
"You made a business decision based on business reality. Some people will understand that businesses have to adapt to survive. Others will take it personally regardless of how you handle it. Focus on the people who are going to help you not just get back to where you were, but build something stronger."
Then we talked about business as usual. Not because the situation wasn't heartbreaking, but because the business still needed to operate. The remaining team still needed leadership. Customers still needed service.
"You don't apologize for making decisions that ensure business continuity. You acknowledge the impact, you treat people with dignity, but you don't apologize for running a business that needs to survive."
For Leaders Facing Impossible Choices
If you're in a similar position, here's what I've learned from walking through this with multiple clients and having been there myself:
The decision will be harder on you than them. They'll find other jobs. You'll carry the weight of this decision for years.
Not everyone will understand. The people who matter will. The ones who don't probably weren't the right fit anyway.
Business as usual isn't heartless. It's necessary. Your remaining team needs to see that you can make tough decisions and keep moving forward.
You can grieve and lead simultaneously. Acknowledging the difficulty doesn't mean apologizing for doing what the business required.
The Truth About Caring
Caring about your people doesn't mean keeping everyone regardless of business reality. Sometimes it means making the hard choice to save the business so the remaining jobs are secure.
The employees who accused my client of not caring were wrong. The decision to let people go was made BECAUSE they cared about the business, about the remaining employees, about the customers depending on them, about their own family's livelihood.
Caring business owners don't make redundancies easily. They make them heartbroken, but they make them when they have to.
That's not heartless. That's leadership with a heart that's breaking but still beating.
The Bottom Line
Business isn't always fair. Markets don't care about your good intentions. Economic downturns don't skip over companies with great culture.
But businesses run by people who care, even when they have to make impossible choices, are the ones that survive and rebuild stronger.
Even when it breaks their heart to do it.
P.S. If you're going through something similar, know that the decision to prioritize business survival doesn't make you heartless. It makes you responsible. The right people will understand that. The wrong people will reveal themselves. Both outcomes help you build a stronger future.
FAQs
How do I make redundancies without destroying the remaining team's trust?
Own the decision publicly and explain the business reality that forced it, without overapologizing. Show your remaining team that you've made a hard choice based on survival, not personal preference. Then demonstrate through your leadership that the business is still viable and worth their continued effort. People respect leaders who make tough calls with dignity, not leaders who pretend difficult decisions don't hurt. The remaining team needs to see that you can navigate crisis without losing your leadership.
What if former employees spread negative stories about me and the company?
Some will. That's the cost of making a business decision that affects people negatively, no matter how carefully you handle it. Your job isn't to control their narrative. Your job is to be clear about your own position and let the people who matter judge based on facts and results. The employees who understand business reality will recognize the context. The ones who don't will reveal themselves through their actions anyway. Focus your energy on rebuilding trust with the remaining team and customers rather than defending yourself to people who've already decided what to believe.
Am I a bad leader if this decision keeps me up at night?
No. You're a responsible leader. Bad leaders make redundancies without thought or consequence. You're losing sleep because you understand the weight of the decision. That's exactly what distinguishes leaders who care from leaders who don't. The fact that it breaks your heart proves you made the decision for the right reasons. Keep moving forward. Your team needs you focused on survival and rebuilding, not paralyzed by guilt over a choice that was necessary.
How do I rebuild the culture after people feel betrayed?
Start by being clear that business survival and employment are connected. Build transparency around financial health so people understand constraints. Stop being so generous that people lose sight of business reality. The next round of flexibility and support should be clearly tied to business performance, not given unconditionally. Strong culture isn't built on unlimited generosity. It's built on clear expectations, honesty about constraints, and mutual accountability. Your next team will be stronger because they'll understand the stakes from day one.
Should I feel guilty for protecting my own family's livelihood?
Absolutely not. You're running a business that supports your family and your employees' families. When the market forces you to choose between keeping everyone and losing the entire business, you're not betraying anyone by choosing survival. You're protecting the remaining jobs and the business that allows those jobs to exist. Guilt is wasted energy that keeps you from leading effectively. Acknowledge the difficulty, make peace with the decision, and move forward. That's what your remaining team needs from you.
