How to share bad news with your team without killing morale

Delivering bad news at work is never fun. Whether it’s a restructuring, budget cuts, or the loss of a major client, these kinds of announcements can quickly take a toll on your team’s motivation and engagement. But the good news? It is possible to break the news with humanity—without breaking team motivation and engagement. Here’s how.

1. Get emotionally ready

Before calling a meeting, take a moment to process your own emotions. Bad news can hit just as hard for the person delivering it as for the one receiving it. By tapping into your emotional intelligence, you’ll be better equipped to react calmly and with empathy.

Ask yourself:

• How do I feel about sharing this news?
• What kinds of reactions can I expect from the team?

2. Pick the right time (and place)

Don’t drop the news on a Friday afternoon or right before a long weekend. Aim for a time when the team is available, open, and there’s space for discussion. The setting matters too: choose a quiet place where people feel safe to express themselves. If your team works remotely or in a hybrid model, factor that in so the timing and setup work for everyone. And if you’re announcing the news virtually, ask everyone to turn on their cameras so you can pick up on non-verbal cues.

A Harvard Business Review study shows that tough messages tend to be better received earlier in the day—when people are more cognitively fresh and emotionally available. (2)

For example, rather than sending a Friday evening email thinking “they’ll have the weekend to process it,” one small business leader announcing budget cuts opted for a Tuesday morning in-person meeting. It gave space for honest conversation and opened up the rest of the week for follow-ups and support.

3. Be transparent

A common mistake is trying to sugarcoat or downplay the news. But people pick up on half-truths quickly—which can lead to mistrust and rumours. Transparent communication is key: explain clearly what’s happening, why it’s happening now, and what the concrete impacts are. If you don’t have all the answers yet, say so. Being honest builds trust.

4. Show you’re listening

Make space for reactions. Even if they’re emotional—anger, sadness, anxiety—they’re valid. Don’t try to fix or brush them off. Sometimes just saying, “I get that this is hard” can ease the tension.

This moment of active listening is also your chance to support the team through change: help clarify the grey areas and reinforce a climate of trust.

For example, when a manager had to announce the abrupt end of a high-energy project that the team had been invested in for months, she didn’t stop at a one-time announcement. She followed up with individual check-ins to acknowledge how people were feeling, recognize their disappointment, and highlight their efforts. What could’ve been a morale hit turned into a trust-building moment.

5. Offer clear next steps

When people hear bad news, their brains immediately search for what comes next. If it’s about budget cuts, explain the new priorities. If it’s an organizational shift—like team changes or a new strategic direction—outline the steps ahead. Even if everything’s not fully figured out, offering some direction helps reduce uncertainty and prevent disengagement.

According to McKinsey, employees are 3.5 times more engaged when they clearly understand how their work connects to the company’s future priorities—even during uncertain times. (4) All the more reason to communicate change effectively!

6. Remember the human side

Behind every job title is a person. After the announcement, create channels for open conversations—one-on-one or in small groups. Share any available support resources and stay present. Empathetic leadership is especially powerful in tough times.

Sharing difficult news is never easy. It takes courage, prep, emotional intelligence—and a good dose of humanity. But it’s precisely that courage and compassion that can turn a hard moment into one of connection. Sometimes, it can even strengthen team cohesion around a shared vision.

You don’t have to go it alone

At Boostalab, we help managers and teams navigate transitions, reorganizations, and change. Through training, workshops, and practical tools, we support you in showing up as a human-centred and courageous leader. Let’s talk.

Our solutions

To support your team through this kind of challenge, we offer several flexible and tailored options:

→ Group training – Discover our team workshops and interactive training paths
→ Individual training – Check out our simple, accessible, human e-learning options
→ LMS content – Get ready-to-use training content you can host on your own LMS
→ Corporate subscription – Give your team access to our full e-learning platform

It’s up to you to pick the format that fits your needs—and helps you turn a tough moment into an opportunity for momentum. Take the quiz and find the right fit for your team.

References

1. Goleman, D. (2007). Emotional Intelligence (10th ed.). Bantam Books.
2. Gallo, A. (2015). How to deliver bad news to your employees. Harvard Business Review.
3. Edelman. (2024). Edelman Trust Barometer 2024. Edelman.
4. McKinsey & Company. (2023). State of Organizations 2023: Ten shifts transforming organizations. McKinsey & Company.