How do we tell employees we lost a major customer when we do not yet know whether jobs will be affected?

Question

Tyler Smith · Accepted Answer

Tell employees what is confirmed, what remains undecided, and when they will hear from you again. Do not promise job security you cannot substantiate, and do not present every downside scenario as a likely outcome.

Explain the business impact in terms people can understand without disclosing confidential customer information. Distinguish revenue from profit and cash where that distinction matters. A large contract ending does not automatically mean the same proportion of jobs must disappear.

Your initial message should cover:
- What the customer has decided and when the change takes effect.
- What leadership is doing to assess the impact.
- What employees should continue doing now.
- Where questions should go.
- When the next update will happen, even if some answers remain open.

Avoid blaming the customer or the account team before the facts are established. Blame encourages people to hide information precisely when you need an accurate picture.

Continue using your operating structure rather than replacing it with rumor-driven updates. Leadership should resolve issues through EOS and communicate decisions through a consistent channel.

If cost reductions become necessary, explain the business reasoning directly and handle individual employment matters privately with appropriate advice.

Credibility comes from consistency between words and actions. Acknowledge uncertainty, keep the next communication commitment, and correct earlier assumptions openly when the facts change.