We are a small firm and we are going to lay off a handfull of people. Can you give me any guidance on how we may want to handle the communication of this event?

At your earliest opportunity if possible!

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The most important thing is to cut deep and be honest. Cut deep because you do not want to go through it again anytime soon and earn the respect of your employees by being honest.

I agree with the other comments but you also have to paint a picture that you hope you will not have to go through this again otherwise the employees will be waiting for the other shoe to drop. I also should note that you should be frank with the employees that you cannot promise that there will not be another layoff.

The most important thing that you can do other than the other things mentioned is to tell everyone at the same time otherwise you have people concerned about "going to the office"

I agree I was at a company that did not do this and you should of seen how much time was wasted on unproductive things like talking about the next layoff and who would go.