By: Kumar Dattatreyan

"The most painful goodbyes are the ones never said and never explained." - Unknown

Let's be real for a minute. When a valued team member's desk sits empty following the latest "strategic alignment of resources" (corporate-speak for layoffs), it's not just a vacant workspace—it's a visible reminder that something has been lost. And while executives are busy crafting carefully worded emails about "difficult decisions" and "positioning for future growth," the emotional impact on the survivors is quietly eating away at your team's mojo.

I've seen this movie before. Too many times, actually.

When Business Decisions Collide with Human Emotions (Spoiler: Humans Usually Lose)

Picture this: I was coaching a team at a financial services firm when, without warning, their beloved product manager got the dreaded "can you come to this meeting that mysteriously appeared on your calendar 10 minutes ago?" The next day, the team sat in their standup, staring at the empty chair where Sarah usually sat. Nobody mentioned it. The Scrum Master awkwardly asked, "So... what did everyone do yesterday?" as if nothing had happened.

Classic corporate theater. Act like nothing happened and maybe nobody will notice the elephant in the room wearing a "Someone's Missing" t-shirt.

The business world rarely uses the language of grief when discussing these "organizational adjustments." We talk about "rightsizing," "restructuring," and "pivoting" — clinical terms that mask the very human experience of loss. Yet the emotional responses that follow major organizational changes—denial, anger, bargaining, depression, and eventually acceptance—look suspiciously like the classic stages of grief identified by psychiatrist Elisabeth Kübler-Ross.

Coincidence? I think not.

The Business Case for Addressing Grief (Because Everything Needs ROI)

I know what some of you are thinking: "But we're running a business here, not a therapy practice!" Fair enough. But here's the inconvenient truth: organizations that ignore the grief process are essentially setting money on fire.

Research shows that unaddressed organizational grief can lead to:

• Productivity declines of up to 20% in the months following significant change, according to a study published in the Academy of Management Journal¹
• Increased turnover among surviving employees—up to 31% higher in the year following layoffs, based on research from Leadership IQ²
• Damaged psychological safety, innovation, and team cohesion, as documented by Harvard Business Review³
• Diminished trust in leadership that can take years to rebuild, according to research from the Center for Creative Leadership⁴

Translation: ignoring grief is expensive. Those "cost-saving" layoffs? They might just be costing you more than you saved.

Just look at what's happening with the Department of Government Efficiency (DOGE). Elon Musk's approach to streamlining federal agencies has included sudden layoffs and "Fork in the Road" ultimatums eerily similar to his Twitter/X playbook. While the initiative promises efficiency, it's leaving a trail of organizational trauma in its wake. According to reports, many federal departments are experiencing exactly what private sector research has long confirmed: sudden, dramatic workforce reductions without proper transitions create massive hidden costs in productivity, institutional knowledge loss, and survivor anxiety.⁵ It turns out that treating your organization like a machine where you can simply remove parts without consequences isn't the brilliant strategy some billionaires think it is.

Recognizing Grief in Your Team (Even When They're Pretending Everything's Fine)

Grief in the workplace often wears a business casual disguise. As coaches and leaders, we need to become emotional detectives, looking for clues like:

1. The Productivity Paradox: Some team members suddenly become superhuman productivity machines. They're first in, last out, and never take lunch. This isn't dedication – it's avoidance. They're working so they don't have to feel.
2. The Meeting Ghost Town: Remember how Dave used to crack jokes and challenge ideas in every meeting? Now he sits silently, nodding along. Alternatively, your normally diplomatic team is suddenly having heated arguments about font sizes. Both are grief in disguise.
3. Risk Aversion on Steroids: "Let's just do it exactly like we did last time" becomes the team mantra. Innovation? That's for teams who aren't in emotional survival mode.
4. The Good Old Days Syndrome: "Before the layoffs..." becomes the start of every other sentence. Your team is stuck in the past because they haven't processed their grief about the present.
5. Emotional Whack-a-Mole: Someone has a complete meltdown because the coffee machine is out of vanilla creamer. It's not about the creamer. It was never about the creamer.

The Grief-Aware Leader: First Response Strategies (No EMT Certification Required)

While navigating organizational grief isn't a quick fix, these initial strategies can help leaders and coaches respond without making things worse (a surprisingly low bar that many still trip over):

1. Acknowledge the Loss: Create space for team members to recognize what and who has been lost. Simple statement: "I know Sarah's departure is a big loss for this team. She brought unique value, and it's okay to miss having her here."
2. Legitimize Emotional Responses: Let people know that feeling angry, sad, or anxious is normal. You don't need to turn your standup into a therapy session, but don't police emotions either.
3. Maintain Connections: When appropriate, facilitate ongoing connections with departed colleagues. The corporate tendency to treat departing employees like they've entered witness protection isn't helpful.
4. Preserve Institutional Memory: Document knowledge, stories, and contributions. This isn't just practically useful; it's emotionally intelligent.
5. Create New Meaning: Help the team connect their ongoing work to purpose and impact. People need to know why they're still showing up (beyond the mortgage payment).

Moving Forward Without Pretending Nothing Happened

Supporting a team through organizational grief isn't about "getting over it" quickly. It's not about "staying positive" or "focusing on the future." It's about integrating the experience into a new narrative that honors what was while creating space for what will be.

The truth is, organizations and teams that acknowledge and process grief together often emerge stronger, more resilient, and more human. They develop deeper trust and the kind of psychological safety that drives innovation. In our business landscape where "adaptability" and "resilience" are more than just buzzwords, this matters.

In the next article in this series, I'll share specific facilitation techniques for helping teams process collective grief productively, including retrospective formats specifically designed for times of significant change.

Until then, remember that acknowledging loss doesn't make you less professional—it makes you more human. And despite all the AI hype, humans are still what make organizations work.

Kumar Dattatreyan is a leadership coach and organizational change expert who has supported dozens of companies through transformations. His DEEP™ approach helps organizations achieve sustainable change while honoring the human elements of work. Connect with Kumar on LinkedIn or at [email protected].

References:
¹ Brockner, J., et al. (2004). "The Interactive Effects of Procedural Justice and Outcome Negativity on Victims and Survivors of Job Loss." Academy of Management Journal, 47(2), 278-285.
² Leadership IQ (2009). "Layoffs: A Study of Layoff Survivors & Layoff Victims."
³ Edmondson, A. C., & Lei, Z. (2014). "Psychological Safety: The History, Renaissance, and Future of an Interpersonal Construct." Annual Review of Organizational Psychology and Organizational Behavior, 1(1), 23-43.
⁴ Sessa, V. I., & London, M. (2015). "Continuous Learning in Organizations: Individual, Group, and Organizational Perspectives." Psychology Press.
⁵ Associated Press (2025). "DOGE gets mixed reviews from conservatives who have long wanted major budget cuts." AP News.

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