How to Compassionately Lay Off a Remote Employee in 2025

Laying off an employee has never been easy — and in today’s world of hybrid and remote work, it still requires careful planning, professionalism, and a lot of compassion.

Back in 2020, at the height of the COVID-19 pandemic, Business Insider shared expert advice on virtual layoffs. (You can read the original archived article here). Five years later, the fundamentals are the same, but the expectations around remote communication have only increased.

Here’s what Adam Calli, principal consultant at Arc Human Capital, recommends to navigate remote layoffs thoughtfully and effectively in 2025:

1. Prepare Thoroughly – Before scheduling a meeting, make sure you understand state-specific requirements about final paychecks, severance, and notice periods (such as those under the WARN Act). Calli emphasizes avoiding last-minute scrambling: “Don’t be fumbling through these details.” Resources like your payroll provider and the state Departments of Labor can provide the needed guidance.

2. Plan the Logistics – Think ahead about retrieving company equipment or sensitive data. Provide pre-paid shipping labels if you need hardware returned, or consider letting employees keep equipment as part of their severance. Also, review any signed agreements around the return or destruction of company information, and tie severance payments to the successful return of company assets if needed.

3. Deliver the News Thoughtfully – Calli stresses that a video call is the most respectful option, but if technical issues are likely, a phone call is acceptable. Avoid email, Slack, or text for delivering layoffs. Also, notify the employee earlier in the day — not days in advance — so they’re not left anxious for too long. A short email like this can help:

Hi [Name],
I’d appreciate it if you can block some uninterrupted time on your calendar this afternoon. I’ve got some important items to go over with you and want to be sure we can discuss them with your full attention. Let me know when you’re available between [time] and [time].
Thanks, [Your Name]

4. Be Direct and Compassionate – When starting the conversation, Calli suggests preparing the employee with a sentence like, “I’m sorry to have to give you bad news.” This helps them mentally brace for what’s coming. Then be clear and concise: explain the reason (economic hardship, restructuring, etc.), outline next steps for severance, benefits, or COBRA, and express sincere thanks for their contributions — without overburdening them emotionally.

5. Handle Aftercare Properly – Once the termination call concludes, immediately notify HR, IT, payroll, and security as needed. Address the rest of your team quickly with a professional, supportive message to ease fears and promote stability. It’s crucial to rally your remaining team so they feel supported and committed going forward.

As Calli reminds us, even when layoffs happen remotely, they’re intensely personal events. Preparing properly and treating employees with respect and dignity can help everyone involved move forward more constructively.