How to lead a team decimated by layoffs

It sounds like an obvious business decision: cut headcount, reduce costs, and signal efficiency to the market. When Block CEO Jack Dorsey eliminated more than 4,000 jobs—nearly half the company’s workforce—citing AI-driven efficiency gains, the company’s stock rose more than 20% within hours. Citigroup is executing CEO Jane Fraser’s plan to cut 20,000 roles by the end of 2026. Morgan Stanley recently reduced its workforce by 2,500 positions across its major business divisions, despite posting record revenues in 2025.