Crisis Communication Elements

A discussion on how CEOs should handle layoff announcements, using Carta's CEO Henry Ward's public statement as a case study.

Key Elements of Crisis Communication During Layoffs

• Focus on the affected employees, not company/CEO perspective
• Keep message clear and straightforward
• Avoid self-congratulatory or defensive tones

What to Include in Layoff Communications

1. Impact Statement

   • Clearly explain the situation and necessity
   • Acknowledge this affects real people
   • Show you exhausted other options first
   • Keep focus on the employees, not company theory

2. Responsibility Acknowledgment

   • Take clear ownership of the decision
   • Avoid blaming external factors only
   • Don't make yourself the victim
   • Skip theoretical discussions about shareholder value

3. Support Measures

   • Outline specific help for affected employees
   • Detail the transition plan
   • Be clear about severance and benefits
   • Provide resources for next steps

What to Avoid

• Don't focus on:

  • Shareholder perspective
  • CEO's personal struggle
  • Complex business theory
  • Self-congratulatory leadership messages

• Common Mistakes:

  • Sounding robotic or scripted
  • Making it about yourself
  • Being unclear about next steps
  • Creating uncertainty about future layoffs

Best Practices

• Be direct: "We tried everything we could, this was our last resort"
• Show empathy: "This sucks and I'm sorry"
• Take responsibility: "This is a failing on my part"
• Focus on action: "Here's how we're going to make it right"
• Keep it professional: Adults understand business realities