The Way a Company Deals With People During Difficult Times is Critical

Originally published in The Vancouver Sun: June 16, 2025

The economic fallout of U.S. President Donald Trump’s tariffs means business leaders across Canada are facing tough financial realities, and some will be forced to make changes to their workforce.

The last time Canadian businesses faced mass workforce disruptions tied to trade with the U.S., it was the 1990s. NAFTA reshaped industries and recessions forced deep cuts. For business leaders, workforce reductions were a simple equation: reduce costs, hand out pink slips, protect the bottom line.

In the 1990s, restructuring happened quietly, efficiently, and with relatively little public fallout. There was no social media. No employer review websites where reputations could take a hit overnight. Executives made cuts behind closed doors, few questioned it, and the world moved on.

But that’s not how business works anymore.

Canadian business leaders are now weighing their next moves. Some will wait to see just how bad things get. Others are quietly making contingency plans. The companies that navigate this moment strategically will survive and may even emerge stronger. The ones that rely on outdated thinking won’t.

In today’s economy, every business decision plays out in the public arena. Employees call out what they see as bad leadership. And the way a company treats its people during difficult times affects its ability to attract and retain top talent later.

Need a real-time example of what happens when workforce reductions are handled without a strategy? Elon Musk’s DOGE layoffs dominated the headlines, and not in a good way. The next Canadian business leader to announce mass layoffs could wake up to their name in the headlines, branded “the Elon Musk” of layoffs in Canada. Once that narrative takes hold, there is no getting ahead of it.

The business leaders who are thinking ahead are already preparing. They aren’t waiting to see the effects of a trade war. They’re making decisions now to ensure that if job cuts become necessary, they are handled strategically, ethically, and with the long game in mind.

That means developing a plan to maintain workforce agility. It means looking at alternatives like re-skilling, redeployment, and voluntary exit packages. Smart Canadian companies are ensuring that if job cuts do happen, they are managed with integrity, clear communication, and a plan that doesn’t weaken company culture.

But it also means thinking beyond the internal impact. The way an employer communicates its decisions to the world will shape its future workforce. Mishandling reductions today will make it harder to attract good talent later. The organizations that emerge strongest from economic downturns are the companies that navigate these moments with strategic foresight, rather than relying on outdated playbooks from the last century.

For leaders bracing for uncertainty, one thing should be clear: Workforce adjustments cannot be handled like they were in the past. The expectations are different. The risks are greater. Frankly, the companies that get ahead of this now, before they are forced into action, will be the ones still standing when the dust settles. Because it’s 2025 and there’s no such thing as “quiet” restructuring anymore.

About the Author: Kristi Searle, FCPHR, SHRM-CP, CPC, is a distinguished human resources professional with over three decades of experience and a proven track record of implementing successful HR strategies. As the Founder and CEO of Peoplebiz Consulting, Kristi has been instrumental in delivering strategic HR solutions to a diverse range of clients since 2002. Under Kristi’s guidance, Peoplebiz Consulting enhances productivity, optimizes HR functions, and provides expert solutions for both growing and established organizations.