Crisis Communication

Overview

How you communicate during a crisis often matters more than the crisis itself. This skill provides frameworks, templates, and principles for communicating during difficult company moments.

Core Principles

The Four Rules of Crisis Communication

• Be Fast - Silence creates vacuum filled by speculation

• Be Honest - Lies and spin always come out eventually

• Be Clear - Confusion makes everything worse

• Be Human - People remember how you made them feel

The Communication Hierarchy

In a crisis, communicate in this order:

• Those directly affected (e.g., laid-off employees hear first)

• Leadership team (so they can support their teams)

• All employees (before external stakeholders)

• Board and investors (same day or next)

• Customers (if they're affected)

• Public/press (only if necessary)

The rule: No one should hear about their situation from someone outside before hearing from you directly.

Audience-Specific Guidance

Communicating with Employees

What they need:

• Truth (even when it's hard)

• Context (why is this happening)

• Clarity (what does this mean for me)

• Path forward (what happens next)

• Empathy (acknowledgment of difficulty)

What destroys trust:

• Finding out from outside sources

• Corporate speak that hides the truth

• Changing stories

• False optimism

• Delayed communication

Formats:

Situation Format

Layoffs 1:1 for affected, then all-hands

Pivot All-hands with Q&A

Funding issues All-hands with Q&A

Executive departure All-hands announcement

PR crisis Email + optional all-hands for questions

Communicating with Board

What they need:

• Early warning (no surprises)

• Facts and data

• Your assessment

• Your plan

• What you need from them

Format:

• Call or emergency board meeting for major crises

• Detailed written update

• Clear asks

What to include:

• Situation summary (2-3 sentences)

• How we got here

• Options considered

• Recommended path

• What we need (decisions, support, resources)

• Timeline

Communicating with Investors

Proactive communication builds trust:

• Tell them before they hear elsewhere

• Be honest about struggles

• Show you have a plan

• Ask for help when needed

Format:

• Email for updates

• Call for major issues

• Be concise but complete

Template:

Subject: [Company] Update - [Brief descriptor]

[Name],

I wanted to reach out directly about [situation]. Here's what's happening:

Situation: [2-3 sentences]

What we're doing: [Your response/plan]

What this means: [Impact and outlook]

I'm happy to jump on a call if you have questions. We're [confident/working hard to] navigate this well.

[Name]

Communicating with Customers

When to communicate:

• Service disruption

• Product changes that affect them

• Leadership changes they should know about

• When they might hear about issues elsewhere

Principles:

• Lead with impact on them

• Be specific about what's changing

• Provide timeline

• Give them a path for questions

Situation-Specific Templates

Layoff Announcement (All-Hands)

Before the meeting:

• Affected employees already informed

• Managers briefed

• FAQ prepared

Structure:

• Open with acknowledgment: "I have difficult news to share today..."

• State the decision clearly: "We're reducing our team by [X] people..."

• Explain why: "Here's why we made this decision..."

• Acknowledge those leaving: "I want to thank those who are leaving..."

• What it means going forward: "For those staying, here's what this means..."

• Q&A: "I know you have questions. Let's talk..."

Sample script:

"Thank you for joining. I have difficult news to share.

Today we're reducing our team by [number] people. This was an incredibly hard decision, and I want to explain why we made it and what it means going forward.

[Explanation of business context - be honest but concise]

We considered alternatives like [what you considered], but ultimately decided this was necessary to [reason - extend runway, refocus, etc.].

To those who are leaving: thank you for your contributions. This isn't a reflection of your work. We're committed to supporting your transition with [severance details].

To those staying: I know this is hard. You're going to have questions about workload, about security, about what this means. Let's talk about those things now.

[Q&A]

We'll get through this. I believe in this team and this company. Thank you for your resilience."

Pivot Announcement (All-Hands)

Structure:

• Acknowledge the change

• Share what you learned (why current path isn't working)

• Introduce the new direction

• Explain what this means for everyone

• Acknowledge the difficulty

• Express confidence in the path forward

Sample script:

"I want to talk about a significant change in our direction.

Over the past [time], we've learned a lot. [Specific learnings]. Based on this, we've decided to pivot from [current] to [new direction].

This isn't a decision we made lightly. We explored alternatives and talked to customers, investors, and advisors. Here's why we believe this is right: [reasons].

What this means for you:

• [Impact on roles/work]

• [What stays the same]

• [What changes]

I know pivots are unsettling. It's okay to have mixed feelings. What I can promise is that we'll communicate openly as we navigate this transition.

Questions?"

Funding Challenges (All-Hands)

When to communicate:

• When runway becomes concerning

• When you're cutting costs significantly

• When fundraise timeline is uncertain

Sample script:

"I want to give you an honest update on our financial situation.

Our runway is currently [X months]. We're actively [fundraising/cutting costs/both]. I want to be transparent with you because you deserve to know where we stand.

Here's what we're doing about it:

• [Specific actions]

Here's what this means for you:

• [Impact on hiring, raises, etc.]

• [What's NOT changing]

I know uncertainty is uncomfortable. Here's what I can promise: I'll keep you informed as things develop. You won't be surprised.

Questions?"

Executive Departure

Voluntary departure:

"I want to share that [Name] has decided to move on from [Company]. [Brief context if appropriate - pursuing other opportunities, personal reasons, etc.].

[Name] has contributed [specific contributions]. We're grateful for [his/her/their] work.

Here's the transition plan: [What's happening with their responsibilities].

Please join me in thanking [Name] and wishing [him/her/them] well."

Involuntary departure (keep brief):

"I want to share that [Name] is leaving [Company]. [Brief, neutral statement if any].

Here's the transition plan: [What's happening with their responsibilities].

I know you may have questions. I can't go into details about personnel matters, but I'm happy to discuss what this means for the team going forward."

Communication Checklist

Before Any Crisis Communication

• Do I know the full facts?

• Who needs to hear this and in what order?

• What questions will people have?

• Do I have answers or a plan to get answers?

• Have I briefed the leadership team?

• Is legal/HR aware (if relevant)?

• What's the follow-up plan?

During the Communication

• Am I being honest?

• Am I being clear?

• Am I being human?

• Am I leaving room for questions?

• Am I committed to follow-up?

After the Communication

• Follow-up on unanswered questions

• Check in with key people

• Monitor sentiment

• Provide updates as promised

• Document lessons learned

Additional Resources

For more detailed templates and examples, see:

• references/layoff-communication.md

• Detailed layoff communication guide

• references/stakeholder-templates.md

• Templates for board, investors, customers