A tough dilemma. You pivoted the business model and need to lay off some people. You also need to hire new people.
Here are some considerations.
Validation – Confirm your growth model is viable in the new landscape. Figure the economy may be down longer than anticipated and ensure your plan is lean.
Check with leadership, key stakeholders, and advisers to solicit tough feedback. Ask for flaws, not compliments.
Budgeting – Before layoffs, review options: reducing salaries, re-purposing employees, finding a fractional or outsourced solution, or offering furloughs before layoffs.
Respect those departing* – Communicate directly, clearly, concisely, and thoughtfully to those laid off.
Offer resources (e.g. referrals, health insurance, and skill training) which smooth the transition.
Respect those staying – Explain the new plan and roles involved fully, such as expected duties and performance.
Check-in regularly since this shift comes at a stressful time.
Recruiting – Screen candidates carefully for the new role. Engage team in a decision matrix** and efficient onboarding.
Determine how to get new hires contributing quickly.
It’s uncomfortable hiring during layoffs. Proactively address how the business must adapt by sharing the vision and steps.