Special offer 

Jumpstart your hiring with a $75 credit to sponsor your first job.*

Sponsored Jobs posted directly on Indeed with Urgently Hiring make a hire 5 days faster than non-sponsored jobs**
  • Visibility for hard-to-fill roles through branding and urgently hiring
  • Instantly source candidates through matching to expedite your hiring
  • Access skilled candidates to cut down on mismatched hires
Our mission

Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.

Read our editorial guidelines
8 min read

Companies often face tough decisions that may require them to downsize their workforce in order to stay in business or maintain financial stability. Factors such as industry changes, budget cuts, restructuring or economic downturns may lead to these decisions.

To maintain long-term success, companies may have to pause upcoming interviews with candidates, cut employee hours or lay off staff. Although such decisions are never easy, they are often tied to strategic, financial, operational or market-driven factors that benefit the business in the long run.

Your role may be to deliver unwelcome news to employees or candidates, which can be stressful and challenging for both parties involved. It’s important to use clear and direct language to help make the transition as smooth as possible.

The following examples and tips can help you deliver difficult news to candidates and employees. Customize them to fit your business’s needs, voice and strategy.

Ready to get started?

Post a Job

Ready to get started?

Post a Job

What to consider before putting your decision in writing

When you have to be the bearer of bad news, there are a few things you should keep in mind to help the receiver understand, process and accept your decision.

1. Break the news face to face

When sharing difficult decisions with employees or candidates, have the initial conversation with them face to face, whether in person or through video chat. Ensure they can have a private conversation before you begin.

If you are canceling or postponing an upcoming interview with a job candidate, it’s okay to send an email to notify them but consider delivering the news via phone or video chat first, especially if the candidate is in the final stages of the interview process.

If you’re sending an email to deliver the news, it’s important to personalize your message to each individual. This can help the recipient feel valued and respected.

2. Use the BEBE method

When delivering difficult news, it can be helpful to organize your message using the BEBE formula (Buffer, Explanation, Bad news and Exit).

Buffer: Open with a short statement that softens the blow of the bad news you’re about to give — without misleading the reader into believing the message contains positive news. This could be thanking a candidate for their interest in your company or complimenting an employee on their recent accomplishments.

Example: “I would like to extend my sincerest thanks for your interest in the [position name] role at [Company name]. We truly appreciate the time and effort you invested in the application process and in speaking with our team. It’s clear from our conversation that you bring a great deal of passion and skill to your work.”

Explanation: Set up the news by explaining the why behind your decision. Studies show that people are more likely to accept an unfavorable outcome if they believe the decision is fair and reasonable.

Example: “Unfortunately, because of the financial challenges our business is currently facing, we’ve had to make the difficult decision to implement furloughs of nonessential positions.”

Bad news: Break the bad news clearly and concisely to avoid any chance of confusion. Keep your message positive by reassuring the receiver that your decision is not a reflection of their performance.

Example: “This letter confirms our previous discussion that [Company name] is placing you on a temporary, unpaid leave of absence, effective as of [date]. Please know that this decision is not based on your job performance.”

Exit: Close on a positive or helpful note—such as with a gesture of goodwill, next steps, or potential solutions—while being careful not to overpromise anything.

Example: “We appreciate all of your contributions over this past year and are looking forward to your return as soon as conditions improve. In the meantime, you may be eligible for unemployment benefits.”

3. Be as transparent as possible

Be as transparent as you can about the specifics of the decision, such as what other cost-cutting strategies you’ve already considered or how long the furlough is expected to last. The more open and upfront you are, the more likely an employee will understand and respect your decision.

Read more: 10 Effective Business Communication Strategies

4. Get a legal review

As with any HR correspondence, consult with your legal team to ensure that the information you communicate to candidates and employees is accurate and in accordance with company policies and applicable labor laws.

Pausing or canceling interviews

If you’re implementing a hiring pause, make an effort to reach out to candidates who have upcoming interviews. Even if you have to put hiring on “pause” for now, things will change — and you want to make sure you maintain a good reputation so you can resume your hiring efforts as soon as your company is ready.

Pausing interviews messaging template

Dear [Candidate name],

Thank you for your interest in the [Role title] position at [Company name].

Unfortunately, due to [restructuring, budget cuts, industry changes, economic downturn], we’re implementing a hiring freeze companywide and will be moving to [postpone or cancel] your upcoming interview. Please know that this decision is not a reflection of your qualifications, skills or interview performance.

We understand that this is disappointing news, but we’d love to [consider you in the future, reconnect with you at a later time, keep in touch to resume the hiring process when the time is right].

Best regards,
[Your name]

Reducing hours

While reduced hours might have the least impact on your employees overall, a loss of income is still unwelcome news that should be communicated with empathy, compassion and reassurance.

Provide clarity around benefits, including whether or not cutting back hours will trigger a loss of eligibility for health insurance or retirement benefits.

Reducing hours messaging template

Dear [Employee name],

Thank you for the excellent work you’ve done on [specific project, task, responsibility] over the past few months. Unfortunately, due to [the lack of work in our industry, revenue loss, etc.], [Company name] has made the difficult decision to reduce hours across certain roles.

This letter confirms our discussion that we’re reducing your work hours from [number of hours] to [number of hours] per week, effective [date]. This reduced schedule is expected to last until [date] but is subject to change. Please know that this decision is not a reflection of your job performance.

You will continue to receive [list of benefits] during this time.

We appreciate all of your hard work during these uncertain times and look forward to better days ahead. If you have any questions, please reach out to [point of contact].

Best regards,
[Your name]

Notifying of furlough/layoff

While furloughs and layoffs might be unavoidable, it’s important to communicate your decisions with sensitivity — and offer support if you have the means to do so (e.g., severance packages, assistance in finding another job).

When communicating difficult decisions, remember that internal communications may be shared publicly. During difficult times, consumers often watch how employers treat their workforce. This can influence public perceptions and buying behavior.

Notice of furlough messaging template

Dear [Employee name],

Thank you for the excellent work you’ve done on [specific project, task, responsibility] over the past few months.

Unfortunately, due to [restructuring, budget cuts, industry changes, economic downturn], [Company name] has had to make the difficult decision to implement furloughs of nonessential positions.

This letter confirms our previous discussion that [Company name] is placing you on a temporary, unpaid leave of absence, effective as of [date]. Please know that this decision is not a reflection on your job performance.

You will continue to receive [list of benefits] during this time.

We appreciate all of your contributions over the past [few months, year, several years] and are looking forward to your return as soon as conditions improve. In the meantime, you may be eligible to collect unemployment benefits. Contact your local unemployment office to find out if you’re eligible and to learn how to apply.

We will continue to provide regular updates on [Company name]’s evolving situation during this period. If you have any questions, please reach out to [point of contact].

Sincerely,
[Your name]

Notice of layoff messaging template

Dear [Employee name],

Thank you for the excellent work you’ve done on [specific project, task, responsibility] over the past few months. We appreciate your hard work and dedication.Unfortunately, [Company name] has made the difficult decision to eliminate certain [positions, teams, departments] to ensure the company’s long-term financial stability.

This letter confirms our previous discussion that we’re implementing a layoff of certain positions, including your role, effective as of [date]. Please know that this decision is not related to your job performance.

We explored several other alternatives, including [reducing hours, implementing a hiring pause, budget freezes, furloughs]. Unfortunately, these efforts have been unsuccessful, and we must eliminate approximately [number] positions to avoid permanent closure.

[Optional paragraph on severance] You will receive [X week’s] of severance pay for each year of employment. In your case, with [X years] of employment at [Company name], you will receive [X weeks] of severance pay at your normal salary. We will continue to provide you with health insurance coverage during this period.

This was an incredibly difficult decision, and we thank you for your understanding. As for the next steps, we will offer support in the form of [outplacement services for assistance in finding a new position, counseling, etc.]. You may also be eligible to collect unemployment benefits. Contact your local unemployment office to find out if you’re eligible and to learn how to apply.

We truly appreciate all of your contributions over the past [few months, year, several years] with [Company name] and wish you all the best in the future. Please reach out to [point of contact] with any questions or concerns.

Sincerely,
[Your name]


If you’re struggling to communicate difficult decisions to your candidates and employees, these tips and templates can help you manage challenging conversations more effectively. By being sincere, transparent and empathetic, you can effectively share disappointing news and better position your business for the future.

Recent HR policies articles

See all HR policies articles
Job Description Best Practices
Optimize your new and existing job descriptions to reach more candidates
Get the Guide

Two chefs, one wearing a red headband, review a laptop and take notes at a wooden table in a kitchen setting.

Ready to get started?

Post a Job

Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.