It’s almost halfway through 2025, and the ripple effects of last year’s economic distress is still felt across America. Countless companies—big and small—were forced to restructure, tighten budgets, and let go of team members. While layoffs might have been necessary to stay afloat, they’ve left behind a quieter, more cautious workforce. And the result… employees are hesitant to take risks, propose bold new ideas, or challenge the status quo.

Why? Because employees are unsure if anyone is listening—or if speaking up might put them at risk of being laid off. 

But here's the critical truth: if your company isn't innovating, it's falling behind. As leaders, it’s time to move beyond the triage of layoffs and begin cultivating a resilient, forward-looking, and innovative culture once again.

In the aftermath of layoffs, companies often experience a psychological freeze. Talented employees begin to question their value. Communication gaps grow wider. New ideas are seen as risks instead of opportunities. And leaders, scrambling to stabilize, often neglect a key ingredient of success: psychological safety.

Bob manages a cross-functional team at a mid-size tech company in Chicago. In Q4 of 2024, his company cut 20% of its workforce. While Bob retained all his team members, the atmosphere shifted drastically.

Where once his team ideated freely in brainstorming sessions, now meetings were filled with silence. People stopped volunteering for stretch projects. Even casual Slack messages became more formal and distant.

When Bob reached out to HR and upper leadership, they were just as unsure. The company still hadn’t solidified its 2025 goals. Some departments were moving in different directions, and communication was fragmented. Leadership was nervous about clashing visions—so they avoided committing publicly to any strategy.

Bob realized two things:

2. His company was drifting, lacking clarity and cohesion.

So he decided to lead from where he stood.

One of the biggest mistakes post-layoff organizations make is failing to reset the vision. Employees are left wondering: “Why am I here? What are we even trying to accomplish?”

This is especially frustrating for employees still waiting to hear what the company’s goals are—even though we’re halfway through 2025.

Bob decided to take initiative. He sat down with his leadership team and asked:

Once he had clarity (even partial), he shared it with his team in a direct, transparent way.

After layoffs, employees often feel “lucky” to still have a job—but that sentiment quickly shifts to anxiety. Why wasn’t I laid off? Am I next? This leads to disengagement, not gratitude.

Bob took a personal approach. He scheduled 1-on-1 goal-setting meetings with each team member and shared:

This wasn’t empty praise. It was rooted in truth. By reinforcing their purpose, Bob helped rebuild his team’s confidence.

Telling people they’re safe to speak up isn’t enough. You have to prove it—with your reactions, your language, and your culture.

Bob noticed that in meetings, people rarely spoke first. So he started modeling vulnerability. He admitted when he wasn’t sure about a decision. He actively solicited pushback. And most importantly, when people did share ideas—even ones that wouldn’t work—he thanked them and asked follow-up questions.

Soon, others followed suit.

Another innovation killer? Stagnation. After layoffs, promotions and lateral moves often freeze. But people need momentum to feel hopeful and motivated.

Bob worked with HR to reopen some cross-functional project opportunities and mentorship pairings. In addition, he encouraged members of the leadership team to join executive mastermind groups to be paired with executives in other companies and departments to gain fresh perspectives, share best practices, and rebuild their strategic confidence by learning how peers were navigating similar post-layoff challenges. 

He encouraged employees to:

Bob also recognized a broader issue: employees were afraid to share new ideas because they weren’t sure what leadership actually wanted.

So, he escalated this concern. He advocated for the C-suite to host a company-wide Town Hall where they could:

This meeting was a turning point. It didn’t answer everything, but it showed employees that leadership wasn’t hiding in silence. That alone helped shift the culture from fear to openness.

By Q3 2025, Bob’s team was not only more confident—they were creating again. They launched a pilot product feature based on employee input. They beat sprint deadlines. And they had the highest employee engagement scores in the company.

All of this came from clarity, connection, and a culture of safety.

Bob didn’t wait for top-down permission. He led from where he stood, and in doing so, re-ignited a team that was once paralyzed by fear.

At first glance, a culture built on positivity seems like a dream. Uplifting messages, cheerful attitudes, and constant encouragement are all hallmarks of a "healthy" work environment. But what happens when positivity becomes mandatory—when it overshadows reality and invalidates the honest struggles employees face? That’s when positivity becomes toxic.

Toxic positivity is the subtle, yet damaging practice of demanding optimism at all costs. In this kind of culture, employees may feel they are not allowed to express disappointment, frustration, or doubt without being labeled “negative” or “unmotivated.” Over time, it leads to emotional shutdown, superficial conversations, and a lack of real feedback—all under the illusion of morale.

Take, for example, a mid-sized marketing tech company that has experienced rapid growth during the pandemic and was celebrated for its “can-do” attitude and upbeat culture. “We only want positive energy here” became a catchphrase repeated in all-hands meetings and internal Slack channels.

But as the company hit a plateau and began facing delivery delays and client churn, employees started to feel a disconnect. Team members who voiced concerns about deadlines were told to “trust the process.” Junior staff who asked for clearer priorities were reminded to “stay positive.” Over time, employee engagement scores fell and levels of burnout rose. And trust in leadership began to erode.

While leaders may adopt positivity as a well-intentioned morale booster, its overuse can undermine team performance, trust, and retention. When people feel they cannot express what’s really going on, innovation stalls, accountability slips, and emotional fatigue sets in. Employees don’t want to work in environments where emotions are filtered and struggles are ignored—they want to feel heard and valued for the full range of their experiences.

Moreover, research shows that psychologically safe workplaces—where employees can voice concerns without fear—outperform those where only agreeable input is welcome. In short, a culture that denies problems denies progress. For companies navigating uncertainty or change, addressing issues with realism and empathy isn’t just important—it’s essential for long-term success.

Fixing toxic positivity doesn’t mean abandoning optimism. It means rebalancing it with emotional authenticity. The marketing tech company began this shift by implementing three key strategies:

Recognizing that leaders need space to process difficult decisions before delivering them with clarity and compassion, the company instituted quarterly executive mastermind groups. These confidential peer sessions gave senior leaders a space to discuss challenges openly, get advice on how to deliver hard news with empathy, and reflect on how to model vulnerability without losing authority.

One CFO shared, “Being able to talk through layoffs with other executives before I spoke to the team helped me center the message in care and transparency, rather than panic or forced positivity.”

2. Real Feedback Systems

To rebuild psychological safety, the company launched an anonymous feedback platform and encouraged managers to hold monthly “Open Reality” sessions—non-judgmental, structured conversations where employees could discuss what wasn’t working and where they needed more support. This initiative helped surface actionable insights and fostered trust, as employees saw their concerns acknowledged and addressed.

3. Modeling Honest Optimism

Executives stopped ending every company meeting with “everything’s great” and began adopting a new mantra: “It’s okay to not be okay—but we’ll face it together.” By sharing challenges alongside successes, leaders signaled that being real was not only allowed, but valued. This shift helped employees see that optimism wasn’t about pretending, but about committing to progress, even when it’s tough.

Transforming a culture of toxic positivity doesn’t happen overnight—but it starts with intentional shifts in how leadership communicates and creates space for others to do the same. Here's how business leaders can begin:

Use employee surveys, listening sessions, or facilitated focus groups to ask tough questions: Do people feel safe speaking up? Are concerns being brushed aside in favor of “staying positive”? Identify areas where feedback is absent or glossed over.

2. Reframe Leadership Messaging

Instead of over-relying on optimistic language, aim for a tone that balances encouragement with honesty. Phrases like “We’re facing a challenge, and we’re working through it together” are more grounding than “Everything’s going to be fine!”

3. Build Support Systems

Set up mastermind groups or peer circles for executives and managers to talk candidly, vent in a healthy space, and get advice on how to communicate tough news with empathy. When leaders feel supported, they’re better able to support others.

4. Train Managers in Psychological Safety

Provide training on active listening, validating emotions, and managing conflict without avoidance. Give middle managers the tools to foster authenticity in 1:1s and team check-ins—without defaulting to forced optimism.

5. Celebrate Transparency

Reward transparency. When an employee voices a hard truth or surfaces a risk, acknowledge it publicly as a courageous and constructive act. This shows that the company values integrity as much as performance.

A strong company culture doesn’t shy away from the hard stuff—it meets it head-on with honesty, empathy, and shared resolve. The marketing tech company’s journey shows that when leaders move from toxic positivity to genuine optimism, they unlock not just morale, but meaning. By embracing reality and building space for honest dialogue, businesses create the kind of trust that fuels resilience, and results.

For years, a large retail company stood at the pinnacle of its industry. Once known for being an industry leader, the company now faced declining revenues, dwindling market appeal, and a growing perception of being outdated. Internally, employees felt disengaged, and stakeholders began questioning the company's ability to innovate.

Jenna, the company’s Chief Strategy Officer saw the warning signs: flatlining sales, a lack of excitement around new product launches, and a growing disconnect between leadership and consumers. But by the time these trends became impossible to ignore, the company was already slipping. She knew that a rebranding effort couldn’t just be cosmetic; it required a deep, cultural shift that engaged employees, reinvigorated consumer trust, and positioned the company as a forward-thinking leader once again.

Many companies fail to notice their decline until it's too late. Signs of stagnation such as declining market share, reduced consumer engagement, and an outdated brand perception often creep in gradually. The large company had long relied on its reputation, assuming customer loyalty would remain intact. But Jenna understood that a successful company cannot operate on past achievements alone. Monitoring industry trends, consumer sentiment, and internal engagement through regular feedback loops, data analytics, and direct customer insights are critical to staying ahead. Companies must use tools to detect early warning signs of market and company shifts.

Rebranding is more than just a new logo or marketing campaign—it’s a company-wide commitment to change. The company’s leadership recognized that for their rebranding to succeed, employees had to be at the center of the transformation. Jenna led an initiative to involve employees at every level, conducting internal surveys, town hall meetings, and brainstorming sessions that encourage innovation and direct input from those on the ground. She partnered with HR to redefine corporate values, aligning them with a more customer-centric and agile mindset.

To truly reshape the company’s culture, leadership adopted a transparent approach. They communicated the company’s challenges openly, showing employees why change was necessary and how they could be a part of the solution. Incentives were introduced to reward innovative ideas, and cross-functional teams were formed to pilot new projects. Employees who once felt disconnected from leadership now saw themselves as vital players in the company's evolution.

For rebranding and cultural transformation to be successful, employees must feel like active participants rather than passive recipients of change. Engagement and enthusiasm stem from clear communication, meaningful involvement, and a sense of ownership. Employees need to understand not only what is changing but why it matters and how they contribute to the company's renewed vision.

With an energized workforce, the company turned its focus outward. Re-establishing trust with consumers required more than an updated brand identity—it needed genuine engagement. The company launched interactive campaigns, leveraging social media to connect directly with customers and solicit real-time feedback. Personalized experiences, product enhancements driven by consumer insights, and strategic partnerships with influencers helped reintroduce the company as a brand that listened, adapted, and innovated.

Additionally, leadership worked on rebuilding trust with stakeholders by showing clear, measurable progress. Transparency in reporting, a commitment to sustainability, and a renewed focus on corporate social responsibility reassured investors and partners that the company’s transformation was more than just rhetoric.

Two years after initiating the rebranding strategy, the company saw a remarkable turnaround. Employee engagement scores were at an all-time high, product launches were met with renewed excitement, and the company’s financial performance rebounded. Customers who once viewed the brand as stale now saw it as dynamic and responsive to their needs.

For Jenna and the company’s leadership, the experience served as a crucial lesson: reinvention is not a one-time event but a continuous process. Businesses that remain agile, listen to their consumers, and empower employees to drive innovation will always have a competitive edge.

Emily was a top performer. As an operations specialist at a fast-growing tech firm, she had spent three years mastering her role, streamlining processes, and consistently exceeding performance metrics. But despite her clear qualifications and aspirations for growth, her manager, Dan, continued to stall her promotion. It wasn’t that Dan didn’t recognize her talent; he depended on it. The thought of replacing Emily, training someone new, and potentially losing productivity made him hesitant to let her advance.

This situation is more common than employees might think. A manager may not consciously sabotage an employee’s growth, but their reluctance to let go of a high-performing team member can create an invisible career ceiling. The challenge for employees like Emily is navigating this bottleneck strategically, ensuring they don’t remain stuck in a role that’s too convenient for management to change. 

From Dan’s point of view, Emily was a linchpin in the team’s success. She handled high-priority tasks with precision, trained new hires, and solved problems before they escalated. Promoting her meant finding someone equally competent, training them, and accepting a potential period of reduced efficiency—all of which felt like unnecessary risks.

However, this mindset can be detrimental to both the employee and the organization. Companies that fail to promote from within risk losing top talent, damaging morale, and sending a message that growth opportunities are limited. For Dan, he needs to be sure about how to evaluate whether someone is ready for a promotion as well. Emily knew she had to approach the situation with both patience and a strategic plan.

Emily understood that directly confronting Dan about his reluctance would not be effective. Instead, she needed to frame the conversation in a way that addressed his concerns while advocating for her own growth. Here’s how employees in a similar situation can navigate this discussion:

Rather than jumping straight into why she deserved a promotion, Emily started by recognizing Dan’s perspective. She acknowledged that she understood how valuable she was to the team and expressed appreciation for the opportunities she had been given.

Instead of making it about personal growth alone, Emily highlighted how her promotion would ultimately benefit the company. She emphasized that stepping into a leadership role would allow her to:

To alleviate Dan’s fears about losing her expertise, Emily presented a plan outlining how she could gradually transition her responsibilities to a successor. This included training a replacement, documenting key workflows, and ensuring continuity in her absence.

Emily then asked Dan directly: “What steps do you see as necessary for me to move into a leadership role?” By shifting the conversation toward actionable SMART goals, she encouraged Dan to define what he needed to see from her before approving a promotion.

To prevent the conversation from becoming an indefinite discussion, Emily worked with Dan to set a timeline for reevaluating her promotion. They established measurable benchmarks and agreed to revisit the conversation within three months to track progress. 

Instead of assuming her manager’s intent, Emily scheduled a one-on-one strategy session with Dan. This wasn’t just a casual career check-in—it was a structured conversation with a clear agenda:

One of Dan’s biggest concerns was replacing Emily. To ease this, she proactively began training a junior colleague, documenting workflows, and suggesting a transition plan. By demonstrating that her team wouldn’t suffer in her absence, she removed one of Dan’s key barriers to promoting her.

Emily also recognized that promotions often require advocacy from more than just a direct manager. She began increasing her visibility within the company by:

This approach ensured that multiple decision-makers recognized her readiness for advancement.

Rather than positioning the conversation as a personal request, Emily framed her promotion as a strategic move for the company. She highlighted how moving into a leadership role would allow her to drive greater impact, mentor others, and enhance team efficiency.

This reframing helped Dan see the long-term benefits rather than focusing on the short-term inconvenience.

To avoid endless delays, Emily and Dan agreed on a clear timeline for revisiting the promotion decision. They set a three-month period to track progress against defined objectives. This ensured accountability and kept the conversation from becoming an indefinite cycle of “maybe later.”

Employees like Emily must recognize their manager’s concerns while advocating for their own growth. By aligning on expectations, developing a transition plan, and framing the promotion as a win-win, they can shift the conversation from reluctance to action. Ultimately, career advancement isn’t just about proving capability; it’s about making it easy for decision-makers to say yes. 

Jessica, mid-level employee, sat at her desk, staring at a growing to-do list and an inbox full of unanswered emails. Her frustration wasn’t just about the workload; it was about the lack of direction. She felt disconnected from her manager, unsure if her efforts aligned with the team's priorities. She had tried to initiate one-on-one meetings to clarify her goals, but her manager always seemed unprepared or distracted. Jessica worried her career was stagnating, and her upcoming performance review loomed over her like a dark cloud.

Then she decided to try something different. Instead of asking for another generic check-in, Jessica approached her manager and said, “Hey, can we have a strategy session?” The response was immediate. Her manager’s eyes lit up with interest, and they scheduled a dedicated hour later that week. Little did Jessica know, this simple shift in language would transform not only her relationship with her boss but also her career trajectory.

The term “strategy session” holds power. Unlike vague requests for a “1:1” or a “check-in,” it signals intentionality and alignment. Most managers juggle competing priorities and dread meetings that lack a clear purpose. By framing the conversation around strategy, you’re tapping into your manager’s mindset of planning and action, making them more likely to engage meaningfully.

Here’s why this approach works:

To ensure a productive meeting, preparation is key. Here’s how you can take charge of the conversation:

2. Align with team goals:
Review your team’s objectives and think about how your contributions fit into the bigger picture. Be ready to discuss how your work supports overall priorities.

3. Draft an agenda:
Include topics like:

4. Gather data:
Bring examples of your achievements, challenges, and areas where you need support. Be ready to back up your points with metrics or specific anecdotes.

When the strategy session begins, set the tone with clear communication and actionable steps. Here’s a framework you can follow:

To maximize the impact, don’t let strategy sessions be a one-time event. Incorporate them into your routine by:

Strategy sessions aren’t just about day-to-day alignment; they also set the stage for successful performance reviews. By proactively discussing your goals, progress, and challenges, you demonstrate ownership of your career and make it easier for your manager to advocate for you. These sessions create a narrative of consistent growth and alignment, which can lead to better evaluations and opportunities for advancement.

Jessica’s decision to ask for a strategy session not only clarified her goals but also strengthened her relationship with her manager. She felt more confident, focused, and motivated—and her manager appreciated her proactive approach. By adopting this simple yet effective strategy, you too can take control of your career, ensure alignment with your team, and set yourself up for success. Start today by asking, “Hey, can we have a strategy session?” and watch how it transforms your professional journey.