Open communication allows information to flow in all directions. Rumors get started when fears arise and communication stops. Often the rumors can do more damage then the bad news.
People have a tendency to think the worst.
These fears and expectations can become a self-fulfilling prophecy. Open the doors of communication and let people know what is happening. Even if the course is undecided, let them know what options are being considered. This helps build trust and cooperation within your organization. Put their minds at ease.