The 2025 Tech Talent Tightrope
While layoff headlines are not dominating as frequently as in the first half of the year, they are still happening. So far this year, U.S. tech firms have cut nearly 75,000 roles, a 35% jump from last year’s period. Over 62,000 cuts hit 284 companies in the first five months (cfi.trade). February alone saw 16,084 tech layoffs (techcrunch.com).
Yet here’s what’s not as much of a news splash: startups are still actively hiring. Many are making strategic leadership hires even while significantly downsizing in other areas of their business.
If you’re a founder or HR leader navigating layoffs while filling crucial leadership roles, here’s how you can succeed without losing trust or momentum.
Why Founders & HR Leaders Can’t Afford to Freeze
Layoffs typically extend runway, signal a strategic pivot, or correct over-hiring, but even during cutbacks, companies must selectively invest to execute their refined vision. Your layoffs might streamline operations, but critical hires, especially in leadership or specialized roles, can remain essential for long-term growth and strategic execution.
Making strategic hires during layoffs can feel contradictory, but savvy startups use this period as a rare opportunity to attract top-tier talent.
Here’s your blueprint to navigate this sensitive challenge:
Step 1: Nail the Narrative
You’re not simply a filling role; you’re signaling strategic focus.
Candidates and existing employees alike will naturally question: “Didn’t we just let go of a significant part of our team? Why hire now?”
Address this head-on:
- Clarify why this specific hire is critical now: “We are adding specialized leadership to accelerate our core product initiative, essential for growth and long-term success.”
- Highlight strategic investments: Clearly communicate areas you are actively funding, such as product innovation, international expansion, AI integration, etc.
- Show the clear road ahead: Articulate major strategic pivots and wins that underscore future stability and opportunity.
Step 2: Keep it Quiet (for now)
Confidentiality around strategic hires during layoffs is vital to minimize confusion or anxiety.
Instead:
- Work closely with trusted executive search firms to maintain discretion.
- Use confidential candidate pools and NDA-bound conversations.
- Conduct interviews discreetly, offsite, or virtually.
Reassure candidates about confidentiality, stability, and thoughtful strategic intent.
Step 3: Move with Purpose
Speed and precision matter. Hiring delays can amplify uncertainty internally and externally and cause growth to slow or even stall.
- Collaborate closely with your VP People or HR team: Ensure urgency, leverage asynchronous communications, and streamline processes.
- Leverage interim leadership: Use fractional leaders if needed to support teams temporarily, signaling continued stability and thoughtful management.
Efficient but deliberate action maintains morale and confidence.
Step 4: Communicate Clearly and Transparently
Clear communication is essential to maintaining trust, especially during sensitive periods.
Act I: Internally Align First
- Share the strategic rationale internally before any external announcements.
- Ensure leadership and management teams have cohesive, reassuring messaging.
- Emphasize these hires as strategic investments critical to future growth.
Act II: Public Announcement with Purpose
- Clearly link new hires to your strategic vision publicly.
- Frame these appointments as deliberate, forward-looking moves.
- Equip all managers with consistent talking points emphasizing stability, strategic clarity, and growth.
Here’s how that narrative could sound:
“We streamlined our operations in Q1 to strengthen our core business and extend runway. We’re now strategically investing in new leadership roles, including Alex, our new Head of Data, who will drive our AI-powered recommendation engine, a critical component for our next growth phase.”
Quick-Hit Checklist
| Stage | Must‑Do Actions |
|---|---|
| Pre-hire prep | Align strategic narrative, ensure confidentiality, anticipate objections. |
| Search kickoff | Secure NDA-bound shortlist, use fractional resources if needed. |
| Internal Comms | Clearly communicate internally first, ensuring cohesive messaging. |
| Public Comms | Public announcements clearly linked to strategic vision and stability. |
Strategic layoffs and critical hires can coexist. Founders and HR leaders who communicate transparently, maintain confidentiality, act swiftly, and articulate strategic vision will secure top talent even in turbulent times.
Because sometimes the toughest choices lead to your most critical hires.