A redundancy is a headcount number on your side and a life event on theirs. Here is what the research says about the human cost, the business cost of getting it wrong, and what Nigerian employers owe both the people leaving and the people staying.

Credit: This article was inspired by a LinkedIn post, "Behind Every Layoff Is a Person", by Briant Neo, whose profile lists him as CEO and Global Head of Recruitment, writing about the approach at Kairos Global Search. The ideas drawn from his post are paraphrased and credited below. The research, data, and Nigerian context are our own additions.

Let's start where Briant Neo starts. When a company announces layoffs, the public conversation is about numbers: how many roles, which departments, how much money saved. His point is that every one of those numbers is a person who built a career, supported a team, and planned a life around the job. Losing the role can bring uncertainty, financial pressure, and a knock to confidence, and the hardest part is often not knowing what comes next.

He argues that how an organisation handles a layoff matters: clear communication, respect, empathy, proper support, and dignity throughout. From a recruiter's perspective, he adds, a redundancy doesn't define someone's ability or potential, and a career can simply have an unexpected chapter.

That is a human argument. It is also a sound business argument, and the evidence is stronger than most employers expect. This article tests his claims against the research, adds what Nigerian law requires, and sets out how to run a layoff that is lawful, fair, and survivable for your brand. Most large studies below come from the United States and other markets, so treat them as benchmarks rather than Nigerian forecasts.

First, Be Clear About What a Layoff Costs the Person

The research on job loss backs up the personal side of the post. Studies reviewed by the Scholars Strategy Network found that the earnings of displaced workers fall by 30 to 60 percent in the year after a job loss, and remain depressed by 13 to 32 percent five or more years later. The same review reports increased stress, anxiety, and worse mental health in the years after job loss (Scholars Strategy Network). A 2024 study of population-wide data in Taiwan reached a similar conclusion, finding an immediate earnings loss of about two thirds and higher medical use for mental health reasons years later (Economics Letters, via National Chengchi University).

Two cautions apply. These studies cover mass layoffs and plant closures, mostly in high-income countries with unemployment benefits, so the exact percentages won't transfer to Nigeria. Where formal support is thin, a missed salary can hurt faster, though that is a reasoned inference rather than a measured finding. And the research looks at averages: some people recover quickly, particularly those with in-demand skills and support.

Layoffs Are Back in the News, Including in Nigeria

This isn't a distant topic. TrueUp data cited by Nairametrics shows global tech firms had laid off about 138,900 workers by May 2026, following more than 245,000 in 2025, with at least three Nigerian startups also cutting staff that year (Nairametrics). TechCabal counted five Nigerian companies with confirmed staff cuts in the first quarter of 2026, including reports that more than 100 employees received termination letters on 1 January, according to the banking workers' union, against the backdrop of the Central Bank's 31 March deadline for new bank capital requirements (TechCabal).

Some of this is driven by AI-related restructuring, which makes the human side harder. If your sector is exposed, see our guide to jobs most and least exposed to AI automation.

The People Who Stay Are Watching

Here is the part employers underestimate. The people who keep their jobs don't automatically work harder out of gratitude. Research associated with Joel Brockner of Columbia Business School shows that survivors' effort, sense of fairness, and wellbeing often shift after layoffs, a pattern commonly called survivor syndrome (CXM).

A LeadershipIQ survey of 4,172 workers who remained employed after a corporate layoff found that 74 percent said their own productivity had fallen, 64 percent said their colleagues' productivity had declined, and the most common feelings were anger, anxiety, and guilt (LeadershipIQ). Another summary of the same study reports that 77 percent saw more mistakes among co-workers (Maven Clinic). It also found that staff who rated their managers highly on visibility, approachability, and candour were 72 percent less likely to report a productivity drop (The People's Board, summarising the study). That last figure is from a secondary summary, and LeadershipIQ is a vendor, so check the original before quoting it.

The lesson is practical: how you treat the people leaving is a message to the people staying.

How You Do It Becomes Your Employer Brand

Briant Neo's emphasis on dignity has a measurable payoff. A global INTOO survey, commissioned by a talent-transition vendor, found that 62 percent of employees lost trust in their employer after layoffs, 54 percent did not trust their leadership to handle layoffs compassionately and ethically, and 71 percent of survivors began job hunting. While 77 percent of HR leaders said their company tried to be exceedingly fair, 33 percent of employees said their employer did as little as possible to ensure fairness. Only 18 percent of employees knew their employer offered outplacement (INTOO; CPA Practice Advisor).

A Careerminds study adds the reputational side. About 69 percent of employees said they had shared or would consider sharing a negative layoff experience online, 39 percent said layoffs hurt their view of their employer, and 40 percent of HR leaders reported higher voluntary turnover afterwards. Only 45 percent of HR leaders said their offboarding included outplacement or career transition services, and just 42 percent offered redeployment (Insurance Business, reporting Careerminds). Employees said more transparent communication (63 percent) and more generous severance (51 percent) would have improved how they viewed the process.

An older US survey of more than 1,200 recently laid-off workers by Andersen and Vault found that 44 percent felt the reasons for the cuts weren't communicated effectively, and that effective communication mattered more to them than extra benefits such as job-search support (CFO.com). It is dated, but it matches the newer findings.

Remember that INTOO and Careerminds both sell transition services, so they have a commercial interest. The consistent message across vendor and independent sources is still the same: communication and visible support matter.

The Legal Floor in Nigeria

Dignity doesn't replace the law. It sits on top of it. Under section 20 of the Labour Act, redundancy means the involuntary and permanent loss of employment caused by excess manpower. For employees covered by the Act, the employer must inform the trade union or workers' representative of the reasons for and extent of the anticipated redundancy, apply the "last in, first out" principle subject to relative merit, skill, ability, and reliability, and use best endeavours to negotiate redundancy payments for those not covered by other regulations (BusinessDay; Mondaq).

Three further points matter. The Act's protections apply mainly to "workers", meaning junior, manual, or clerical staff, so managerial employees depend more on their contracts and common-law fairness. Courts have also looked to international best practice, including consultation with employees' representatives and early written notice to the authorities, drawing on the National Industrial Court Act (Perchstone & Graeys, Employment Law Newsletter, July 2024). And legal commentators warn that poorly run redundancies can bring wrongful termination claims and reputational damage that outweigh the savings, with rehiring soon after a redundancy flagged as a particular risk (Mondaq, TALP Tech Brief, March 2026). Take advice from an employment lawyer before acting. This article is not legal advice.

Five Practices That Put the Principle Into Action

1. Exhaust alternatives first. Before cutting, test hiring freezes, reduced hours, redeployment, and voluntary exits. Document why they weren't enough. This protects you legally and shows employees the decision wasn't casual. Cost: time. Protects: trust and legal position.

2. Communicate early, plainly, and in person. Tell people the reason, the scope, the timeline, and what happens next. The surveys above suggest employees weigh candour more heavily than polish. Train managers first, because they will face the questions. Cost: low. Protects: trust among leavers and stayers.

3. Pay fairly and pay on time. Honour contractual notice and entitlements, and negotiate redundancy payments in good faith where the Act calls for it. Late or disputed payment is the fastest way to turn a hard decision into a public grievance. Cost: direct. Protects: reputation and legal risk.

4. Give people a way forward. This is the heart of Briant Neo's argument: the next step isn't always another job immediately. It can be understanding transferable skills, reassessing direction, and finding where experience creates value elsewhere. Practical support includes references, CV and interview coaching, introductions to your network, and time off to interview. Point people to practical resources such as CV mistakes that cause instant rejection, why an incomplete job board profile costs you offers, and AI skills employers now expect from every candidate. For people who need bridge income while they search, our piece on how Nigerians are making a living working online outlines realistic options. Cost: low to moderate. Protects: employer brand and alumni goodwill.

5. Look after the people who stay. Hold a clear conversation about what the business looks like now, rebalance workloads rather than quietly piling them on, and make senior leaders visible. Watch for the warning signs of disengagement, such as errors, withdrawal, and quiet job hunting. Cost: time and attention. Protects: productivity and retention.

A Realistic Sequence

  1. Confirm the business case and the alternatives. Record what you tried before choosing to cut.
  2. Get legal advice on the Labour Act, contracts, union obligations, and notification duties.
  3. Set selection criteria that are documented, consistent, and non-discriminatory, applying last in, first out where the law requires it.
  4. Prepare managers with a script, a Q and A, and a plan for the first week.
  5. Tell people in person, with the package ready, including entitlements, references, and transition support.
  6. Communicate to the remaining team the same day, with honest answers about what comes next.
  7. Follow up at 30 and 90 days. Check on leavers where appropriate, and measure survivor engagement and turnover.

What Not to Do

Don't announce by email or a group call alone. People want to hear it from a human. Don't cut and then rehire the same role. It undermines your stated reason and carries legal risk. Don't assume gratitude from survivors. The evidence says guilt, anxiety, and anger are more likely. Don't let security or access cut-offs humiliate people. Protect the business without treating departing staff as threats. Don't go silent afterwards. Silence is where rumour and bad reviews grow.

The Bottom Line

Briant Neo's central claim, that behind every layoff is a person, turns out to be good business as well as good ethics. The people leaving carry the cost first, with sharp earnings losses and real strain on wellbeing. The people staying judge your values by how you treat them. And everyone else, from future candidates to customers, hears the story. A layoff will never be painless. It can be lawful, honest, and respectful, and the employers who manage that are the ones people will still speak well of a year later.

This article was inspired by a LinkedIn post by Briant Neo and draws on the Scholars Strategy Network, LeadershipIQ, INTOO, Careerminds, Andersen and Vault, TrueUp via Nairametrics, TechCabal, and Nigerian legal commentary, current as of October 2026. Most large surveys cited are from the United States or global samples and are used as benchmarks only. Several figures come from vendor surveys or secondary summaries and are labelled as such. The Nigerian legal summary is general information, not legal advice, and the law may change. Consult an employment lawyer before any redundancy exercise.