What the AI Surge Is Teaching Us About Adaptive Leadership, in the Face of Tech Layoffs.

It begins with an email. Usually sent early, before meetings kick off. Or worse, over a weekend. We read about this happening in newspapers, frequently.

The subject line is sterile: "Company Update." 

The language inside is templated, impersonal: “After careful consideration… economic headwinds… difficult decisions… impacted employees, etc, etc, etc.” 

And just like that, the landscape shifts beneath everyone's feet. 

As the AI revolution hurtles forward, the tech and media industries find themselves both blessed and burdened. AI promises unprecedented efficiency and scale, but it also prompts real fear: Will I be next? What do I tell my team? And most urgently, how do we move forward together after colleagues—sometimes friends—are suddenly gone?

In the wake of sweeping layoffs at major software firms, streaming giants, and AI startups, one truth is emerging with clarity: The way a leader responds in the emotional aftermath defines the team's future. People’s futures.

This is a story about resilience—not just individual grit, but the collective ability of teams to adapt, rebuild, and reconnect when everything feels uncertain. 

This is also a story about emotional intelligence, and how it separates those who merely "manage" through such dramatic upheaval, from those who truly lead.

Post-Layoff Conversations: Where Emotional Intelligence Begins

After layoffs, every conversation carries a different weight. It is tempting for leaders to rush forward, to "refocus on the mission" or "look ahead." 

But here's what actually happens: Teams don’t simply reset. They recalibrate, slowly, painfully, often silently.

The most effective leaders in this moment do one thing first: They acknowledge the emotional truth of the moment.

Emotional intelligence, particularly self-awareness and empathy, becomes a strategic asset. 

A leader who enters a team meeting with robotic optimism or vague platitudes will lose trust before they even start. Instead, emotionally intelligent leaders:

• Speak clearly and simply.

• Use real human language (“This is hard. I know many of you are hurting. So am I.”)

• Listen more than they speak in those first meetings.

They understand that their people are in shock, even if their jobs remain. Survivors feel guilt, confusion, anxiety, and sometimes even anger. Good leadership doesn’t fix those feelings. It validates them.

One engineering director at a Fortune 500 AI firm recently said this in an all-hands meeting, post-layoff:

“I can’t pretend today is normal. It’s not. I lost teammates, too, and I’m feeling that. But I want you to know I’m here, I’m listening, and I care about how we move forward together.”

That’s not just emotionally intelligent. That’s adaptive leadership.

Rebuilding Team Morale Without Resorting to Toxic Positivity

One of the most well-intentioned but damaging behaviours leaders engage in after layoffs is what I call toxic positivity. It looks like this:

• "Let’s focus on the positives!"

• "Now we can really be agile!"

• "Everything happens for a reason."

In the face of trauma (and layoffs are trauma for many), these statements feel dismissive. They erase pain, rather than honour it. Over time, they can lead to cynicism, disengagement, and burnout.

Real morale doesn’t come from motivational posters or forced team lunches. It comes from:

• Psychological safety: Do people feel safe to speak honestly without fear?

• Meaningful purpose: Do people understand why their work still matters?

• Trust: Do they believe leadership is being honest?

To rebuild morale, leaders must walk slowly. Here’s how:

1. Create intentional spaces for grief and conversation. Give your team time to talk. Hold voluntary drop-in sessions where no task updates are needed. Just connection.

2. Share the emotional load. It’s okay to show your own sadness and vulnerability. This gives others permission to do the same.

3. Recognize small wins. Not in a forced way, but in a genuine, grounded manner. Acknowledge someone’s extra effort or team support. This builds momentum without glossing over the hardship.

4. Ask for feedback, often. What do your people need now? What are they feeling? Use anonymous pulse surveys, 1:1s, or team check-ins to hear their truth.

True morale isn’t forced. It’s earned, piece by piece, through honest leadership.

Transparency vs. Over-Assurance: Walking the Leadership Tightrope

In a moment of crisis, everyone looks to the leader. They want clarity. They want reassurance. They want to believe it won’t happen again.

But herein lies the paradox: Over-assurance creates more fear.

If you promise, "There will be no more layoffs," and a month later another round comes, you’ve broken trust. If you say, "Everything is back to normal," while workloads double and budgets shrink, you signal disconnect.

Emotionally intelligent leaders tell the truth – even when it’s hard. Especially when it’s hard. Instead of over-assuring, say:

• "Here’s what I know, and here’s what I don’t."

• "I can’t promise stability, but I can promise transparency."

• "We are monitoring things closely, and I will keep you informed every step of the way."

A VP of People at a media-tech hybrid recently sent this memo to her teams:

"I wish I could tell you there won’t be more cuts. But what I can do is be fully transparent with what we’re seeing and hearing. I commit to weekly updates, even if there’s no news, so you’re never in the dark."

That kind of honesty gives people a stable ground: not certainty, but consistency.

Best Practices from Companies That Navigate Layoffs with Humanity

Some organizations have shown remarkable emotional intelligence in navigating layoffs. They don’t just cut. They care. 

Here are a few key practices from companies that have prioritized people, even in hard times:

1.Make the process as human as possible. (That’s a tough one)

Rather than cold emails, some companies ensure every impacted employee gets a personal phone or Zoom call with their manager and an HR representative. This shows respect and dignity.

Example: A prominent AI infrastructure company gave each laid-off employee:

• Two weeks’ notice before their last day.

• Access to career coaching and resume support.

• Retention of their laptop to assist with job searching.

• Option to attend farewell gatherings, if they chose.

2. Support the "survivors." (And YES, they need it)

Too often, the focus is only on those leaving. But those who stay carry the emotional and operational load. 

Companies that excel at post-layoff resilience:

• Hold "healing circles" or facilitated discussions.

• Provide access to counselling or Employee Assistance Programs (EAP).

• Encourage managers to dedicate time for team debriefs and check-ins.

3. Re-center on values. (Never underestimate their unifying force)

Moments of crisis are a chance to recommit. After a major layoff, a well-known cloud software firm held a company-wide values week. 

It included:

• Leadership storytelling sessions.

• Cross-functional innovation jams.

• Employee-led panels on "Why I Still Believe in Our Mission."

It wasn’t performative. It was participatory. And it helped people re-anchor in meaning.

4. Be visible and available. (Quite simply – show up!)

In the wake of uncertainty, silence is the enemy. The best leaders:

• Walk the (virtual or real) halls.

• Take questions live.

• Show up in town halls, and casual spaces.

One CTO hosted a weekly 30-minute “Ask Me Anything” session. No slides. No agenda. Just dialogue. 

This kind of transparency reduces anxiety and builds belonging.

What Adaptive Leadership Looks Like Now

Layoffs aren’t just business decisions. They are emotional earthquakes with serious consequences.

The leaders who guide teams through them with strength, and grace, are those who:

• Stay emotionally present, not just operationally reactive.

• Lean into hard truths rather than paint false optimism.

• Create environments of safety, where people can voice their pain, confusion, and ideas.

Adaptive leadership is about responsiveness. But more than that, it's about emotional fluency – the ability to tune into the human frequency beneath the business noise.

As an adaptive leader, you don’t have to have all the answers. But you do need to be the kind of leader who can say:

• "I hear you."

• "I see you."

• "I’m with you."

And when it comes to encouraging teams to be resilient, adaptive leaders know it’s not about bouncing back. It’s about bouncing forward – together – with trust.

A Final Thought to Leave You With: What We Humans Remember

In a few years, your team may not remember exactly which tools you migrated to or how you restructured after the layoffs.

But what they will remember is:

• How you made them feel in the hardest meetings.

• Whether you were honest or evasive.

• Whether you cared about the humans behind the headcount.

The AI revolution will undoubtedly continue to reshape our work. Automation will keep evolving. Efficiency will always be pursued. 

And emotional intelligence? 

That’s what will define the next generation of great adaptive leaders.