Introduction In the modern world of business, companies have to engage in stiff competition in order to survive in the market. Competitive struggles are not always successful, and firms experiencing problems might have to start practicing unpopular methods such as layoffs to reduce their spending. This paper discusses the issues pertaining to layoffs in detail. In particular, three ways that a manager may utilize to help different parties cope with adverse emotions related to layoffs are discussed; the process of conducting a dismissal meeting is described; some possible ways that a company can use to compensate workers for the compulsory redundancy are offered, and a timeline for doing so is provided; finally, three ways in which a layoff may affect the organization are debated. Coping With Negative Emotions Accompanying an Employee Layoff Due to the fact that compulsory redundancies usually cause negative emotions in all the parties involved in or related to the process, it is paramount to be able to adequately address these emotions so as to reduce their adverse effects (Lavelle, Folger, & Manegold, 2016; López Bohle, Bal, Jansen, Leiva, & Alonso, 2016). Three methods for dealing with such emotions in different parties are provided below.  1. For the manager who informs the employees about their layoffs, it is possible to deal with negative emotions involved in this process by realizing that the layoff is usually caused by financial problems of the organization and that layoffs in some cases are necessary if the company is to remain operational and provide employment for the rest of its staff.  2. As for the worker who has been laid off, it is pivotal for the manager to be respectful and honest, and not to make up reasons for dismissal. The manager should explain to the employee that they are being laid off because of the tough situation the firm is in (or due to restructuring, etc.), and not because of their skills or qualities. If true, it is possible to explain to the worker that because of the adverse situation the organization is in, it is likely that the firm could go bankrupt if no tough decisions were made, and the worker would lose their job anyway.  3. As for the workers who remained in the firm’s employment, it is also possible to explain that the layoffs were dictated by the firm’s adverse situation and that it was decided to lay off several workers rather than go bankrupt and not be able to provide employment for anyone. It is possible to make appeals to the workers’ feelings, asking them to keep working so as to help the company retain its capabilities and live through the crisis. Conducting a Dismissal Meeting Prior to conducting a dismissal meeting with an employee, it is of paramount importance to prepare for this meeting to be able to deliver the news to the employee in a manner that would allow for causing the minimal amount of harm to their feelings, psychological state, and self-esteem. Preparation is also critical for the manager to be able to appropriately answer the employee’s questions, as well as to avoid harmful mistakes during the process of layoff. A dismissal meeting could be prepared, organized, and carried out in the following mann