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How to Lead Your Team and Rebuild Trust and Morale After Layoffs

by | Mar 21, 2025 | Leadership

You sit at your desk, staring at your inbox. The weight of the last few months is palpable—the layoffs, shifting priorities, and lingering uncertainty. It’s been three months, but the scars remain, not just in the numbers, but in the faces of your team. You know there’s a lot to fix, but right now, it feels like you’re grasping at straws. The most pressing question:

How do I rebuild trust in my team?

As a consultant, I’ve worked with leaders who faced this same challenge, rebuilding trust and morale after layoffs. One of my clients, struggling with the same concerns, found a way to address these issues strategically, and I want to share the steps they took to rebuild their team’s confidence and engagement.

Rebuilding Trust with Remote Teams

For leaders managing remote teams, the challenge of rebuilding trust is even more complex. My client’s team, like many others, was spread across multiple time zones, making it difficult to maintain a consistent level of engagement. They were experiencing a growing sense of emotional distance that didn’t seem to go away, no matter how many meetings were scheduled.

The first step they took was to prioritize one-on-one check-ins. Instead of focusing on performance or productivity, these meetings allowed for open, personal conversations. My client allocated 30 minutes for each team member—no agendas, no reports—just time to talk about what was going on in their lives, their struggles, and their personal goals. This simple strategy helped bridge the emotional gap between leader and team, and soon, the atmosphere in the meetings began to change. People who had been quiet began to open up, and the trust that had been lost during the layoffs slowly began to be rebuilt.

Holding the Team Accountable Without Micromanaging

Accountability is often a key challenge for leaders after a layoff. The natural instinct is to micromanage, to make sure the team is working at full capacity. But this approach only breeds resentment and frustration.

Instead, my client decided to focus on outcome-based goals rather than micromanaging every step of the process. By clearly outlining the goals to be achieved but leaving the “how” up to each individual, the team felt empowered. This shift in responsibility allowed them to take ownership of their work. My client found that, with clear goals and the autonomy to reach them, the team was more productive and innovative, and the need for constant check-ins faded. Trust in each other’s capabilities started to grow again.

Rebuilding Morale and Restoring Purpose

After the layoffs, morale was at an all-time low. Team members were burnt out, and the sense of camaraderie had disappeared. My client knew that simply pushing for higher output wouldn’t solve the underlying issues—they needed to restore a sense of belonging and purpose.

One of the most effective steps they took was to introduce team huddles, not as formal events, but as opportunities for the team to come together and share personal stories. These sessions weren’t about work, they were about building human connections again. The team celebrated personal milestones, like Tanya’s son getting into his dream college after years of rejections. Sharing victories like this reminded everyone of the importance of celebrating life’s wins, big and small. Slowly, but surely, the walls came down, and morale began to improve.

Addressing Conflict and Rebuilding Respect

After the layoffs, my client also faced a tense atmosphere, with underlying conflicts emerging between a few team members. Conflict was uncomfortable for them, like many leaders, they’d avoided confrontation in the past. But it became clear that this could not be ignored.

To address this, my client hired us to train his staff in a structured conflict-resolution framework. This approach provided a safe space for everyone to voice their concerns and work through disagreements in a healthy way. It took time, but over a few difficult conversations, respect began to grow again. Team members became more willing to listen and understand one another’s perspectives, which reduced tension and fostered a collaborative spirit.

Reinforcing Alignment with Company Vision

The final hurdle my client faced was ensuring that the team remained aligned with the company vision in the aftermath of the layoffs. Without a clear direction, people were at risk of becoming disengaged or disconnected from the larger goals.

To address this, my client made a concerted effort to reconnect the team to the company’s mission in every conversation. Instead of simply focusing on day-to-day tasks, they reminded the team of the bigger picture and how each person’s contributions mattered. By consistently tying their work to the larger purpose, the team began to see how their efforts contributed to something meaningful beyond their immediate tasks. Slowly, they began to feel a renewed sense of pride in their work.

Conclusion

Rebuilding trust and morale after layoffs is a complex, multi-step process, but it’s one that can lead to a stronger, more cohesive team in the long run. The steps my client took—fostering personal connections, empowering their team, rebuilding morale through purpose, addressing conflict, and reconnecting with the company vision—were all part of a larger strategy focused on trust and emotional recovery. By making intentional, human-centered decisions, they were able to create a culture that not only survived the layoffs but thrived afterward.

 

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