How to work through fear, give hard feedback, and doing layoffs with grace | Matt Mochary

When leaders are in fear or anger, their brains over-exaggerate negative outcomes and block clear thinking. Mochary often ‘bets against’ fearful CEOs on low-stakes decisions to prove their instincts are reversed, then uses that insight to coach them through higher-stakes calls like board transparency.

Deliver the news in a private, face-to-face (or Zoom) conversation, warn them it will be difficult, invite them to share emotions, and then become their ‘agent’ by actively helping them identify and land their ideal next job—not just offering a passive reference.

The biggest predictor of a ‘botched’ layoff is people learning they’re fired via mass emails or group announcements. Mochary recommends managers deliver all layoff news individually, cut deeply enough to do it once, then hold all‑hands and one‑on‑ones with the stay team to process fear, anger, and sadness so the organization can rebound within weeks.

Across many clients, Mochary has seen that after significant layoffs, companies ship more, improve NPS, and run smoother because there are fewer people to coordinate, inform, and appease. He argues most tech companies bloat headcount far beyond what’s optimal for speed and clarity.

Rather than just listening passively, Mochary reflects back what he heard, then goes a level deeper by articulating what he suspects they’re really thinking but softening—often stronger, more emotional language—which creates a powerful sense of being understood before deciding what to change or not.