Rumors and fear can hinder a restructuring initiative. Managers can combat this by communicating effectively with employees and explaining how the transition will create a stronger company, says a recent article from strategy+business.

Knowing that layoffs are part of the cost-cutting process, most employees will feel vulnerable about their future with the company. They may become frustrated and seek opportunities elsewhere. Those who stay may grow angry and resentful, but they still need to do their jobs: serving clients, meeting deadlines and moving existing projects forward.

It’s up to the managers to keep morale as high as possible, the authors say. They should explain the rationale for the restructuring and why particular choices were made. They should focus on the positive, emphasizing the benefits of working at a more effective and efficient post-transition company.

Managers also need to feel comfortable communicating up the hierarchy without fear of negative consequences to let executives know what’s happening in the trenches.

See the full article from strategy+business, “Building Trust While Cutting Costs.”