Downsizing with Care: Ethical Layoffs in Nonprofits When Harm Is Unavoidable

Layoffs may sometimes be unavoidable, but the way a nonprofit makes and carries out those decisions still reflects its governance and stewardship. In this article, our founder explains why significant workforce reductions cannot be treated as an HR exercise alone when they reshape mission delivery, organizational capacity, or institutional risk.

The article identifies four elements of ethical nonprofit downsizing: shared governance, disciplined decision-making, transparency without defensiveness, and leadership presence after the cut. It also explains how boards and executives can fulfill their distinct responsibilities, use objective criteria, communicate difficult decisions clearly, and protect trust even when no available option is painless.

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