How to Conduct Layoffs of Sales Reps [Full Guide]

Look at Sales Performance Data

Let me be clear: This is not your end-all-be-all, but you’re making these layoffs because times are tough, so raw sales data is going to have to be examined.

Are they protecting their current revenue? Bringing in new accounts? Are they still making their numbers? If not, how off of the mark are they? Start by answering these questions for everyone you know you may have to cut.

This becomes your baseline that you can fall back on if all of the other factors make the decision seem impossible.

Remember: You have to be objective. This data gives you your backstop of objectivity when it comes time to make the hard decision.

Consider How Each Rep Fits with the Company Culture.

We already know the times ahead are going to be tough. Would you rather spend that time with a complete jerk who brings in 3% more money? Or with someone everyone loves having around, but who might earn a little less?

Weighing the cultural fit helps you keep the team’s overall morale in focus, too. If you’ve got a handful of people who are a joy to work with, but now they’re surrounded by a higher concentration of intolerable heels -- yeah, you’re probably going to lose them too.

Think of how your team will look after these layoffs. Think of how they gel with one another and with the overall culture of the company. That’s going to play a larger role than ever in your morale in the days ahead after these layoffs.

Consider their Character, Particularly their Grit.

Someone might be a mid-tier earner with a go-along-to-get-along attitude that helps them gel with everyone. Maybe good enough to stick around? Maybe. But if they sink under pressure, or if they’re the type to just coast through life, that’s points off in my book.

When you’re considering who to let go, consider their grit.

How do they handle tough times? How have you seen them operate under pressure or when a customer’s frustrated? There’s going to be lots of negative emotions, especially from your customers, since they’re weathering these tough economic times too.

Grit wins in times like these -- literally, at the biological level. Do they have it? Then consider keeping them on.

This is About Them, Not You.

You might feel awful. You might have lost sleep and have been nauseous for days. But, thank God, you’ve still got your livelihood. They’re about to lose that. So, no matter how bad you’re feeling, you keep all of the focus on them.

Maintain Sympathy, but Keep it Objective.

You need to feel for the other person and sympathize with their circumstances. Like we said before: All of this is objectively awful.

But for their sake -- and your own -- you need to keep it above board, professional, and objective.

That doesn’t mean you have to be totally unfeeling, but your job isn’t to emotionally coach them through the moment.

They absolutely might blow up at you and call you every name in the book. You keep it above board, stay firm in the decision, and remember that the best thing you can do for everyone involved is to stay calm, professional, and sympathetic yet firm.

Embrace That This is Going to Be Tough.

Again, grit. This is going to be an objectively bad time for everyone.

You have to make peace with the fact that these are the circumstances, and that you’ve objectively made the most informed decision you could make in order to make the outcome as good as it can be.

Know that you did your best. Know that they did their best. Know that this is simply just the circumstances; move ahead.

Logistically Prepare for the Changes.

There are going to be big and small changes that happen after these layoffs. You’re going to get asked if Allen can get Jeremiah’s old accounts. You’re going to have DeAnna ask for Mellisa’s old office.

You don’t have to have every little potential question and scenario nailed down, but doing your legwork for the big items now -- customer accounts, vendor relationships, etc. -- is going to serve you well in the days after the layoffs.

Plan the Day of the Layoffs and Stick to It.

If it’s going to be on that Friday, then it’s that Friday. Absolutely nothing interrupts that day. Communicate with the peers and any higher-ups that you may need to to ensure everyone’s on the same page.

Reserve a Closed-door Room to Conduct the Layoffs.

If you’re doing this in person, choose a conference room or other closed-door room with as much privacy as possible.

Plan to Give the People Staying on the Rest of the Day Off.

For the people on your sales team who are staying on, give them the rest of that day off. Designate someone to tell them after you have those being laid off in the other room.

Don’t make a big show of it. Just tell them and have them leave the building promptly.

Say your piece. Keep it objective and brief. Then you leave.

“I’m sorry to inform you that we have to let you go. This isn’t a decision we’ve arrived at lightly, and we’re sorry it’s come to this, but the decision has been made. This is so-and-so from HR who will guide you through the paperwork and other matters. Thank you and good luck.”

That’s really the essence of it. Don’t invite a long, dragged out, emotional tempest. Stick to the facts, sympathize with them, but stay brief and professional.

And then you leave. If you’re going about these layoffs in-person, literally get up and leave the room once your portion of the meeting is done. If this is via Zoom, disconnect from the call. Your piece is over.

The longer you drag it out, the more you invite an even stronger swell of incendiary emotions for everyone there; so keep it brief.

Do not let the People Who Were Laid Off Co-mingle with those Staying on.

This is why you got the room; this is why you gave everyone else the day off.

It’s almost always incendiary -- and even humiliating -- when the people who just got fired start co-mingling with the people staying on.

It’s a disaster waiting to happen and just fuels the flames of fear and uncertainty for the people staying on. Keep them separate.

Give Everyone an Opportunity to Breathe.

Everyone’s going to feel some level of negative emotion. They -- and you -- need a bit of time to breathe, process the change, and start to collect thoughts.

You’re going to get a lot of questions and requests almost immediately. You’re going to get worried texts, calls, and emails.

“We’ll address that and all of the other questions soon. Thanks.” That’s going to be your go-to as those immediate responses come flooding in.

Clear the Air, Fortify the Team, and Answer their Questions.

You can’t stay quiet for too long, though. Your silence is a vacuum that will be immediately filled by everyone’s worst fears and suspicions; and that will just add fuel to the proverbial fire.

Address the team. Keep it plain, simple, and straightforward. Confirm that they are staying on. Plainly state what the immediate focus is, why and what everyone’s focus should be. Let them ask the questions that address any elephants in the room.

Tell them that you already have things like who’s taking what accounts already decided and you will be informing folks privately of those changes.

This is where you clear the air, reflect, and then get everyone re-focused. Questions will trickle in after this for a good while. Handle them as necessary and keep the lines of communication open. An open-door policy is key here -- now more than ever.

Know that this will pass.

You’re going to make it through this awful time. I’ve been on both sides of the table on this: the one doing the layoffs and the person getting laid off.

I’ve survived both; and looking back on the times that I’ve been let go, I can see how those moments -- which, don’t get me wrong, were objectively awful at the time -- ultimately worked in my favor.

You will make it through this. They will make it through this. This is just a really cruddy part of leading a sales team.