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In a world where there is a constant wind of change involving economic shifts, digital distortion, and business reformation, downsizing has become a sad but often unavoidable part of the corporate gamut. As Albert Einstein once said, “In the middle of every difficulty lies opportunity.”
Layoffs are viewed as a crisis and a negative experience for both employers and employees, but not necessarily do they have to end on a sad note. In fact, with a correct approach, they can become a stimulant and open doors to compassion, credibility, and long-term sustenance. This is where outplacement services shine converting a difficult adieu into an impactful new genesis and transforming unpleasant scenarios into a strategic act of kindness.
Workforce Reductions in 2025
Tech Sector: Over 22,000 tech jobs have been lost in India so far in 2025, following a turbulent 2024 that saw more than 150,000 tech workers made redundant across 549 companies.
Startups: Indian startups are experiencing a slowdown in layoffs in 2025, with 1,602 employees laid off by seven companies, a decrease compared to the same period in 2024
Outplacement Meaning
Some organizations offer services to employees who are on their way out trying to make their transition easy. These are outplacement services which are essentially support services provided by companies during a layoff or redundancy. These services focus on the humane aspect that could entail career counselling, resume creation, interview coaching, or job search techniques. Some firms might also offer them access to a slew of job opportunities through various networks.
Shifting the Narrative: From Crisis to Care
It is important for companies to signal that they still care after layoffs occur as they often face organizations the repercussions usually negative from media, internal teams, and even the public domain. However, offering outplacement services negates the adverse effect to a certain extent. It presents the organization not as one severing ties, but as one extending a hand of trust and care. The switch in perception can diminish reputational damage, accelerate trust among remaining workers, and tell the world about how responsibly leaders must handle sensitive situations making a positive impression on external stakeholders.
Benefits of Outplacement for Employees and Employers
Benefits for Employees:
- Emotional Support: A person after losing a job can be demotivated and emotionally drained. This is where outplacement services can help by offering counselling and mentorship to individuals who need help with navigating the unstable period with determination.
- Career Counselling: Individuals will get an access to experts who help them recognize their strengths, explore new domains in new industries, and refurbish their career paths.
- Job Search Programs: The process is very useful for job seekers as they are exposed to numerous resources, networks, and personalized coaching, resulting in landing a job faster and cutting down on unemployment gaps.
Advantages for Employees:
- Brand Preservation: The image of a brand gains momentum if it demonstrates empathy during difficult periods. A company brand is built not just on their services or products but also on how they can handle adversaries. In a world where reputation is a priority and talent speaks; a compassionate downsizing becomes a smart branding strategy.
- Legal Risk Mitigation: It is a demoralizing for companies undergoing layoffs or workforce downsizing as it is not just an emotional setback, but they also face the risk of legal implications.
Employees who get terminated may be disgruntled and feel unfairly treated, leading to disagreements, doubts, or high-priced litigation. A well-crafted outplacement can act as a protective shield. They offer career counselling, resume support, and job search resources trying to transition employees smoothly.
- Boosts Morale: Organizations must be cautious when layoffs occur as it may create an environment of fear, disdain, and uncertainty among existing employees. However, when they witness organizations treating their departing colleagues with dignity, and respect and providing them with support sending a powerful message that they value people come what may.
This approach builds a sense of respect for their employer. It demonstrates that the organization sticks to its morals even during difficult times.
Outplacement firms in India have reported a surge in demand, with increases ranging from 20% to 40%.
Modern Workforce Outplacement
The need for outplacement support today is more than ever before as in the modern era and ever-changing job market, elements like empathy, transparency, and corporate responsibility are what the Gen Z and millennial workforce expect. The workforce is dynamic today and their core values are reforming organizational traditions.
The new generations focus on how an organization treats them not just during pleasant times but also during phases of change or adversity. Managing layoffs by companies is a critical process as it can make or break their brand reputation. Outplacement is no longer an act of generosity by companies but a business strategy.
A structured outplacement service offered by companies can be a strong message conveyed to express that they value their people even if they part ways. Such approaches apart from preserving the brand image also protect the internal morale. Employees who are still working in such companies can feel compassion when their peers are treated respectfully and are likely to remain engaged and loyal.
Then there are macro trends like the digital revolution, automation, and rising remote and hybrid work modes, all making the reshuffling of the workforce inevitable. There is a constant change in job roles with some vanishing. Organizations must quickly adapt and reorganize teams or switch skill sets.
This is where the role of outplacement becomes significant as it enables a smooth transition by offering affected employees the necessary support to reskill, venture into new sectors, or start entrepreneurship. A job loss can instantly be transformed into a fresh start.
As we know by now investment in outplacement is a business imperative nowadays and companies are not just safeguarding the interests of those who are leaving but protecting their ability to attract quality talent in the future.
Progressive organizations understand the importance of supporting individuals through every phase of their journey, including their exit as it is the key to long-term success.
Making Outplacement Part of Your Culture
Organizations embracing outplacement as part of a wider support culture and employment mobility are well prepared to handle change with compassion and planning. By integrating career transition services proactively into their workforce management, companies send a message loud and clear to current and future employees that they are committed to their long-term development and well-being going beyond the tenure of a role.
A difficult situation and decision can be transformed into a powerful one with the right support. Exits can be converted into new beginnings helping former employees emerge stronger, reinstating a company’s commitment to individuals, even when they part. Managing change is not the only factor it is about how the change is led with empathy, purpose, and integrity.
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Rajkumar Shanmugam
Rajkumar Shanmugam is the Head of HR at ALP Consulting, bringing over 19 years of comprehensive HR leadership experience across India and international markets. His expertise spans talent acquisition, employee relations, performance management, compliance, and HR transformation. Rajkumar has a proven track record of driving people-centric initiatives, enhancing workplace culture, and aligning HR strategy with business goals. With extensive experience in US staffing operations and global mobility, he continues to lead organizational excellence through innovation and employee engagement.
