Retaining Mission-Critical Team Members Through Layoffs

Amid economic uncertainty and rapid technological advancements, many senior executives are under intense pressure to shrink their most expensive line item: their people. And while some departments may benefit from thoughtful restructuring, others face a far more damaging outcome: the loss of mission-critical team talent. Department leaders then face a tough challenge. They have to convince those senior executives, who may not be close to day-to-day operations, that cutting key roles could pose far greater risk than reward. On a spreadsheet, eliminating a role may look like savings. But on the ground, terminating key talent can stall momentum, erode culture, and jeopardize long-term success. Through our work advising dozens of companies facing similar situations (Kathryn as an executive coach and keynote speaker and Jenny as an executive advisor and learning and development expert), we’ve found that there are three key strategies to help department leaders keep their most crucial people during workforce reductions. 1. Build the case. Research has shown that fewer than 5% of roles account for more than 95% of a firm’s ability to execute on its strategy and deliver results. As a leader, it’s your responsibility to make a compelling case for retaining someone key to success. This begins with clarity: Who can’t you afford to lose? It’s not about title and tenure; what matters is who drives the firm’s big bets, sets the tone with their peers, and has relationships and skills that aren’t easy to replace. It’s essential to start by identifying how that person is pivotal to ongoing operations. For one client of ours, Emily (an SVP of marketing and communications), this meant completing a strategy map to help her fully grasp how her direct report was tied to the organization’s goals. This tool clarifies how an individual’s responsibilities connect to strategic outcomes, highlighting where their departure would create risk or disruption. Below is a simplified version of that tool, which is based on Robert S. Kaplan’s and David P. Norton’s strategy map. We’ve used this with multiple clients to assess impact across five critical dimensions. For each dimension, we help leaders evaluate the level of business risk—low, medium, or high—if the individual were to leave the organization. Each rating is supported by clear commentary that connects the person’s role to what the business values most. Making the Case to Retain a Key Employee A tool for leaders that looks at five critical dimensions to assess the level of business risk—low, medium, or high—of an employee’s departure. Dimension Description Risk rating (low, medium, or high) Dimension BUSINESS CONTRIBUTION Description The impact of their work on critical business outcomes, such as revenue, innovation, or crisis management. Risk rating (low, medium, or high) Dimension CROSS-FUNCTIONAL ALIGNMENT Description The degree to which they connect teams, accelerate decisions, and drive cross-functional alignment. Risk rating (low, medium, or high) Dimension EXTERNAL REACH Description The strength and irreplaceability of their external relationships, including media, clients, regulators, and other critical partners. Risk rating (low, medium, or high) Dimension CONTINUITY Description The depth of institutional knowledge, brand voice, and historical context that prevents the organization from repeating past mistakes. Risk rating (low, medium, or high) Dimension CULTURAL SIGNAL Description The impact their presence (or departure) has on morale, loyalty, and perceptions of fairness across the team or company. Risk rating (low, medium, or high) Source: Jenny Fernandez and Kathryn Landis, adapted from “Measuring the Strategic Readiness of Intangible Assets,” by Robert S. Kaplan and David P. Norton. For each dimension, we work with clients to assess the level of risk if that person were lost and craft concise commentary to explain why. This mapping exercise gives leaders clear language and tangible evidence to illustrate the stakes—not just in terms of performance, but in how the individual protects what matters most, mitigates risk, and ensures strategic progress. Because when resources are tight and difficult options are on the table, it’s not enough to say someone is “valuable.” As part of building a strategic value map, use questions like these to clarify where this person’s absence would create disruption or delay: What key initiatives or priorities depend on this person? What business outcomes would stall or fall through the cracks without them? What is the opportunity cost of losing their external relationships, such as clients, investors, and media contacts? What institutional knowledge resides with them that would take months or even years to rebuild? Are you willing to lose them to a competitor? What message would it send if a high-performing, well-respected team member were let go? Would others start to question whether doing hard work even matters? How does this person accelerate decision-making or reduce friction across teams (e.g., product, legal, marketing)? What risks emerge if those relationships are disrupted? Emily’s team member was ultimately retained, despite initial concerns about cost. By clarifying the business risk and surfacing key trade-offs, she enabled decision-makers to recognize the long-term value of keeping a high-impact contributor. Her success hinged on early preparation and framing the conversation around strategic priorities rather than individual performance alone. 2. Enroll supporters. Even the strongest business case needs champions. Once you’ve clarified the employee’s unique value, your next move is to reinforce it by activating key stakeholders and aligning with their personal priorities. This isn’t just about metrics—it’s about understanding what decision-makers and key influencers really care about. Start by asking: Who else sees this employee’s value? For instance, look for cross-functional peers, mentors, or other senior leaders who can help make your case. Emily reached out to the head of product and VP of legal affairs, both of whom were willing to vouch for her direct report’s contributions in adjacent areas. When others speak up, especially those at your level or above, it sends a powerful signal that the person’s impact extends across the organization. Then, go a step further. Think about what matters most to the C-level leaders you’re trying to persuade, whether that’s legacy, loyalty, or risk. Shape your message to align with their priorities and perspective. For example, if the CRO is focused on global expansion, highlight how the employee’s work supports those goals (“Removing her could delay our Dubai launch by a year”). Or if your CEO has staked their credibility on innovation and this person is central to your AI roadmap, make that part of the case. 3. Make it visible. Once you’ve clarified the business impact and reinforced your case with strategic support, your next step is to bring it to life. This is about helping the C-suite see the full picture before decisions are locked in. One client, Alex (head of technology and operations), heard a rumor of upcoming layoffs and became concerned that his most trusted team member was at risk. So he built a strategic value map identifying three areas where her departure would cause ripple effects. This included delaying the rollout of a critical customer-facing system central to the company’s go-to-market strategy. Then, he made sure that the message landed. Here’s how to make a persuasive case: Have the conversation live. In-person or video conversations give you real-time feedback so you can read the room and adjust on the spot. Focus on results. Explain what the company gains by keeping the employee, like avoiding risk, driving revenue, or saving time. Don’t lead with how hard they work or how nice they are. Use clear, visual summaries. A concise strategic value map with risk ratings and scannable bullets helps executives grasp the stakes in seconds. Follow up in writing. A crisp email or short memo reinforces your clarity and ensures your case is documented. Ultimately, your goal is to make the stakes visible so that what matters most doesn’t get lost in the spreadsheet. In Alex’s case, his team member’s role was still eliminated. However, because he acted early and framed the risk clearly, he was able to secure an internal transfer for her to a higher-priority initiative that wasn’t impacted by the cuts. His advocacy preserved not only institutional knowledge but also team morale, demonstrating that even when roles can’t be saved, people often can be. . . . In times of uncertainty, it’s tempting for organizations to move fast, cut first, and explain later. But what looks efficient on paper can backfire in practice. As a leader, your job is more than just advocating; you need to equip C-level decision-makers with the insight, context, and options they need to make the best call possible before it’s too late. Because when you make the absolute cost of someone’s departure clear, you’re not just protecting an individual—you’re safeguarding momentum, reputation, and the company’s ability to deliver on what matters most.

Retaining Mission-Critical Team Members Through Layoffs

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