Managing PR Around a Layoff or Pivot

Managing PR Around a Layoff or Pivot

In the startup world, change is constant. But few changes come with higher stakes—or more risk—than a layoff or a pivot. These moments test not just your business model but your brand’s integrity. In 2025, with heightened public sensitivity and a skeptical media landscape, how you communicate bad news matters more than ever.

The companies that weather transitions successfully don’t just have a smart plan—they have a transparent, empathetic PR strategy that earns respect, even in tough moments.

Why PR Can’t Be an Afterthought

Startups often make the mistake of treating public relations as an optional step after the hard decisions have been made. But in the age of real-time commentary and screenshot receipts, your communications plan must evolve in lockstep with your business decisions.

Whether you’re letting go of 10 people or restructuring your entire product, the narrative forms quickly—and often without you. Your job is to get ahead of it and shape it honestly.

The Stakes of Mishandled Messaging

• Alienated employees become vocal critics.
• Media frames the move as failure, not strategy.
• Investors question leadership.
• Customers feel instability and disengage.

But done right? A pivot can signal courage. A layoff can demonstrate responsibility. Transparency builds trust. And thoughtful communication repositions you for what’s next.

Step-by-Step: Crafting a Smart PR Plan

1. Coordinate Internal and External Comms: Employees should never hear bad news from the media. Share internal messaging before external releases.
2. Center Empathy in Tone: This isn’t just about optics. It’s about people. Your messaging should acknowledge emotion, thank contributions, and provide resources.
3. Own the Narrative: Don’t hide behind euphemisms. Be clear about what’s changing, why, and what the path forward looks like.
4. Designate a Spokesperson: Consistency matters. Ideally, a founder or executive should speak to press and internal teams directly.
5. Pre-Write Scenarios and Statements: Have drafts ready for media inquiries, employee FAQs, and social comments.

Messaging Framework: Layoff

• Headline: “Today We Had to Make a Difficult Decision”
• Lead: “We’ve reduced the size of our team by X% in response to [context]”
• Body: Acknowledge emotions. Share severance/support details. Reinforce mission.
• Close: “We’re grateful to every team member impacted, and we’re here to support their next steps.”

Messaging Framework: Pivot

• Headline: “A New Chapter: Refocusing Our Mission”
• Lead: “We’re evolving our product strategy to better serve [audience]”
• Body: Explain the ‘why’ clearly. Share what’s changing and what’s staying the same.
• Close: “We’re excited for what’s next and thankful for the community that got us here.”

Media Strategy Tips

• Offer Exclusive Context: Don’t just send a blast. Offer one-on-one time to key journalists to explain your thinking.
• Time It Right: Avoid late Friday dumps. Own the narrative early in the week and follow up with additional updates.
• Support Your Statements: Back up claims with data, customer feedback, or performance goals tied to the pivot.

Internal Culture Considerations

Often overlooked, your internal PR is just as important. How leadership communicates with the team during a tough change can determine morale for months. Hold space for emotion. Encourage dialogue. And follow through on promises made in statements.

Final Thought

Pivots and layoffs are never easy. But they can be defining moments—opportunities to show what kind of brand, leader, and company you really are. In 2025, empathy, transparency, and clarity aren’t just PR best practices. They’re business essentials.

Lead with integrity. Speak with care. And remember: the right words at the hardest times can echo for years to come.